Google halves Play Store billing fee for developers globally
Yesterday, Google announced that it is slashing its Play Store billing fee globally from 30 percent to 15 percent. The reduced fee will be levied on the first million dollars a developer earns through in-app purchases. However, Indian payments platform Paytm reportedly called the move "absolute hogwash". Notably, Paytm is a leading critic of Google Play's billing system.
Fee cut applies to first $1 million earned by developers
In a blog post, Google's product management VP Sameer Samat announced that through this move, Google intends to help developers build sustainable businesses. He explained that starting July 1, all developers will have to pay a 15 percent fee for the first $1 million they earn. Earnings after that threshold will be subject to a 30 percent fee.
Google believes its policy is fairer than Apple's fee cut
Google said this is a "fair approach," possibly referring to Apple's fee reduction policy from last year. Apple's fee cut applied only to developers that earn under $1 million a year, and not the first million earned by all developers each year. Google's blog post also claimed that the 50 percent fee cut will benefit 99 percent of developers globally.
Paytm called the move an attempt to divert attention
A Google India spokesperson reportedly said the fee cut is in response to demands of Indian developers who have been protesting against the billing system. Meanwhile, a leading protester, Paytm termed the move as "absolute hogwash" and an attempt to divert attention. Last year, Google had said its Play billing policy affects only three percent of developers as almost 97 percent don't sell digitally.
New policy comes when Play Store policies are under scrutiny
A 30 percent fee has always been a constant for the lifespan of Google's storefront. The company says its cut is for "distribution partner and operating fees". The new policy also comes in at a time when Google is facing antitrust lawsuits. Its Play Store policies are also under intense public scrutiny since Epic Games' Fortnite was deplatformed.
