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This article was published on March 16, 2021

Google reduces developer commission to 15% on their first million dollars

Google reduces developer commission to 15% on their first million dollars
Ivan Mehta
Story by

Ivan Mehta

Ivan covers Big Tech, India, policy, AI, security, platforms, and apps for TNW. That's one heck of a mixed bag. He likes to say "Bleh." Ivan covers Big Tech, India, policy, AI, security, platforms, and apps for TNW. That's one heck of a mixed bag. He likes to say "Bleh."

Last year, Apple reduced its App Store commission from 30% to 15% for developers who made yearly revenue of less than $1 million. Now, Google has followed its steps by introducing similar conditions for Android developers on Play Store.

The Big G is offering discounts on the first million dollars a developer earns. That’s unlike Apple, which canceled the discount if your app earns more than $1 million in a year.

That means you could earn $2 million, $5 million, or more, but Google will always apply a 15% commission on the first million.

The company said that once a developer verifies some basic information about their app and revenue, the search giant will apply the discount on the apps and renew it automatically:

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.

The firm said that these rules will come in effect from July 2021.

There’s one exception to this new change, and that’s India. Last year, after Google introduced its Play Store fees, developers in the country were outraged as they didn’t have enough time to integrate these changes.

At that time, the company said that it was delaying the Play Store fees rollout for Indian developers to April 2022. In an interview with TechCrunch, Vijay Shekhar Sharma, CEO of the Indian Payment company Paytm, said that $1 million bar is very low, and as soon as a developer earns more than that, they have to pay almost 44% fees with taxes.

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