Google follows Apple in reducing its cut of app sales

For indie Android app developers, life could get a little easier soon. Google is reducing sales of Play Store apps and digital goods from 30% to 15% for the first $ 1 million in sales a developer makes each year. This is in line with a similar move Apple took last November. The smaller cut will take effect from July 1, 2021.

This could have a significant impact. Google claimed its lower income would cut fees in half for 99% of Play Store developers and potentially help them grow by offering more money for staff and servers. The move could also help midsize app developers who are still facing challenges as they grow, said Google Vice President Sameer Samat.

Further details are expected in the “coming months”.

See also: The 15 best Android apps

As you may have guessed, this is not strictly altruistic. The reduced cut in the Play Store comes relatively soon after Epic sued Google and Apple. Both have violated antitrust laws by insisting that purchases in their stores use their official payment systems. The Fourteen days Developer positioned itself as a crusade for indie developers struggling under the 30% cut. In theory, Google is undermining this lawsuit much like Apple – small studios should do better, but giants like Epic still have to pay 30% for all but a small portion of their revenue.

It also helps that Google can probably afford that. Sensor Tower found that publishers making less than $ 1 million made up less than 2% of game sales on Apple’s App Store for most of 2020, and there is no reason to believe that the situation would with Google is completely different. Google can probably cut the Play Store cut for smaller developers in half and lose little money in the process. It should also benefit in the long term if more indies grow and have to pay these 30% fee. So this isn’t a huge sacrifice, even if it’s supposed to help app makers overall.