Google Play to Reduce Service Fee to 15% for Developers

Google Play will reduce service fee to 15 percent for developers with annual revenue of $1 million.

(Image Courtesy: Google)

Google on Tuesday, 16 March, announced that it will reduce the service fee to 15 percent for developers selling digital goods and services using Google Play Store. The reduction of service fee will come into effect from 1 July 2021.

“With this change, 99% of developers that globally sell digital goods and services with Play, will see a 50% reduction in fees. 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.”

Sameer Samat, VP, Product Management, Android and Google Play

The decision has been taken for the developers with annual revenue of up to $1 million. The company will levy a 30 percent service fee from developers with annual revenues over $1 million.

Google said that it had heard from partners making $2 million to even $10 million a year that their services are still on a path to self-sustaining orbit. “This is why we are making this reduced fee on the first $1 million of total revenue earned each year available to every Play developer that uses the Play billing system, regardless of size,” Samat added.

The service fee for Google Play is only applicable to developers who offer 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, the company said.

(With inputs from IANS)