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Wednesday, October 27, 2021

Google to cut Play Store service fee to 15% for first $1 million revenue

Tech giant Google will reduce the service fee applicable to every Play developer using the Play billing system, regardless of size, starting 1st July. It will enable a 50 percent reduction in fees for 99 percent of developers globally who sell digital goods and services with Play.

“Starting on 1st July 2021, we are reducing the service fee Google Play receives to 15 percent for the first $1M of revenue every developer earns each year. With this change, 99 percent of developers globally that sell digital goods and services with Play will see a 50 percent reduction in fees,” Android and Google Play Vice President Sameer Samat said in a blog post.

Sameer Samat, Android and Google Play Vice President [Pic: The Guardian]

These are funds that can help developers scale up their operations by hiring more engineers, marketing staff, and increasing server capacity, among others, Samat elaborated. “While these investments are most critical when developers are in the earlier stages of growth, scaling an app doesn’t stop once a partner has reached $1M in revenue — we’ve heard from our partners making $2M, $5M, and even $10M a year that their services are still on a path to self-sustaining orbit.”

Detailing further, Samat said this was a fair approach benefitting all. “This is why we are making this reduced fee on the first $1M of total revenue earned each year available to every Play developer that uses the Play billing system, regardless of size. We believe this is a fair approach that aligns with Google’s broader mission to help all developers succeed.”

“Once developers confirm some basic information to help us understand any associated accounts they have and ensure we apply the 15% properly, this discount will automatically renew each year. We look forward to sharing full details in the coming months,” Samat added.

“Last year when we clarified the requirements of Google Play’s Payments policy, we explained that the service fee for Google Play is only applicable to developers who offer the in-app sale of digital goods and services. More than 97 percent of apps globally do not sell digital goods, and therefore do not pay any service fee,” Samat said.

Indian developers who sell
digital goods, but are yet to integrate with Play’s billing system, their deadline continues to be 31 March 2022 as announced earlier.

Sameer Samat

However, the tech giant emphasised that Indian developers who sell digital goods must integrate with Play’s billing system by 31 March 2022. Samat said that those Indian developers who sell digital goods, but are yet to integrate with Play’s billing system, their deadline continues to be 31 March 2022 as announced earlier. “For the thousands of developers in India that are already using Play to sell digital goods, they can start receiving the benefit of this change as soon as it goes into effect in July.”

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