“Starting on 1 July, 2021 we are reducing the service fee Google Play receives when a developer sells digital goods or services to 15 per cent for the first $1 million of revenue every developer earns each year,” the search giant said in a blog post.
“With this change, 99 per cent of developers globally that sell digital goods and services with Play will see a 50 per cent reduction in fees,” Google claimed, adding that this will apply to all companies, no matter their size, as services making large amounts of money can still be “on a path to self-sustaining orbit.”
This news comes after developers have been contesting payments in the Google Play Store after the search giant made it impossible to circumvent its own in-app payment system.
Apple, like Google, levies the same 30 per cent tax for all in-app purchases. Epic Games, by offering its own payment system for items, would have lowered the cost of items for users.
As well as Epic, companies including Spotify, Protonmail, and many others formed a ‘Coalition for App Fairness’ in order to fight what they see as tech companies’ unfair advantage on their own app stores.
They argue that this is because Apple and Google are in a privileged position to promote their own apps over rivals, due to their ownership of both the platform (iOS or Android) and the distribution method (the app stores).
In a statement at the time, Apple said Fortnite was removed because Epic had launched the payment feature with the “express intent of violating the App Store guidelines” after having had apps in the store for a decade.
Approximately 28 million developers use Apple’s store, which is the only way of downloading applications onto iPhones without manipulating the software on the device.
Google has argued in the past that developers benefit from the Play Store, and as such is entitled to its cut of fees; unlike on iOS, apps are also available to be downloaded via third-party stores such as the Samsung store or Huawei’s App Gallery.
Last week, Epic Games filed a lawsuit against Google in Australia’s federal court, accusing the technology company of “anti-competitive conduct”.