Google announced on Tuesday that it will cut Google Play app store fees to fifteen on the first million dollars a developer makes on Google’s store once a year.
After developers cross the $1 million mark in sales for a year, Google will charge developers its standard 30% fee for in-app purchases and downloads.
The move follows an identical decision from Apple in December, although Apple’s program only applies to developers which make under $1 million per annum from Apple’s App Store.
The change will address a variety of developer complaints around app stores and their fees, which have come under scrutiny from regulators over their control of smartphone operating systems and therefore the price they charge developers. Google says it’ll share more details before the program starting on Dominion Day.
Google’s program offers a fee reduction to fifteen on the primary $1 million to all or any developers, even those making many dollars.
“With this alteration, 99% of developers globally that sell digital goods and services with Play will see a 50% reduction in fees,” Google VP Sameer Samat said during a blog post. “These are funds which will help developers’ proportion at a critical phase of their growth by hiring more engineers, adding to their marketing staff, increasing server capacity, and more.”
While Google has not faced the maximum amount of scrutiny over its Google Play platform as Apple’s App Store because it’s just one of the many app stores for Android devices, it’s still facing challenges from developers and scrutiny from regulators and lawmakers who say it’s an excessive amount of power over the marketplace for Android apps.
Epic Games is suing Google after the company removed Fortnite from the Google Play store, and has accused Google of monopolizing app payments. Epic Games said in its lawsuit that it offered Fortnite outside of the Google Play app store, through a manual installation process mentioned as sideloading, but Google makes sideloaded apps operate at an obstacle.
“While a discount within the Google app tax may alleviate a little an area of the financial burden developer is shouldering, this doesn’t address the thought of the matter,” an Epic Games representative said during a statement. “Whether it’s 15% or 30%, for apps obtained through the Google Play Store, developers are forced to use Google’s in-app payment services.”
Google is additionally facing state legislatures within the U.S. that are proposing bills that might regulate Google and Apple’s app stores.
Google would are affected by a failed North Dakota bill which may have required app stores to enable software developers to use their payment processing software and avoid fees charged by Apple and Google.
A similar bill passed the Arizona House last week and remains to wait to be debated by the state Senate.`