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Google announced on Tuesday that starting on July 1st, it will lower its Play Store commission fee. The fee will be lowered to 15 percent on the first $1 million developers earn from its marketplace every year. This will lower the fees it takes from 99 percent of Android developers by 50 percent. Google said, “These are funds that can help developers scale up at a critical phase of their growth by hiring more engineers, adding to their marketing staff, increasing server capacity, and more”. The company will go back to taking its standard 30 percent cut after a developer crosses the $1 million mark.
In the last quarter of last year, a similar fee reduction was announced by Apple where developers need to apply to benefit from it. However, developers don’t need to apply to a program to take advantage of Google’s newfound generosity. All developers including those that easily make more than $1 million will benefit from this fee reduction. It should be noted that this change will come ahead of a policy Google will implement on September 30th. This will require all developers to process their payments through the Play Store’s billing system.
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Apple and Google have long been condemned by Independent developers for taking too big of a cut off their work. This led to an open protest last year when Epic Games intentionally broke both Apple’s and Google’s rules on in-app purchases. That action has led to an unending escalating legal feud between Epic and the two tech giants till date.