Google Play Store is a great platform for app developers to showcase their talent. Recently, Google is planning to reduce the fees it charges to app developers to feature apps on Play Store. Now it will take 15% Commission on the applications.
The current changes will apply from the 1st of July. Previously, Google was taking 30% commission from the app developers to feature and application on Play Store. Now, the company is reducing that Commission from 30 % to 15%.
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Reason for the reduction
Last year in November Apple took a similar step of reducing its Commission on the Apple Store. The regulatory bodies are investigating that both the companies are following the claims of anti competitive practices. The investigation is still going on and there are no results yet.
Also, the decision of Google is slightly different than Apple as it allows various application stores to work on its mobile platform. Not only this but it also makes it easier to install software from third-party sources.
Bigger payouts by Google
Google is claiming that through this decision the company is providing more to the app developers. According to the company, the platform also provides marketing tools and other resources to promote the developer’s application.
Coming on to the difference between the Google payout and Apple payout, there is a very big difference between the decisions. Google will take a 15% commission from the first $1m of sales the developer makes each year. The company does not care about the total earnings of the developer through the particular application.
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On the other hand, apple will take a 15% rate if the net sales of a developer is below $1m. If the net sales increase is above the said amount, the company will charge a higher Commission on all the earnings of the developer.
Considering all these claims by both companies, Google sounds like a better option. However, it is the only option for Android developers as Google Play Store is the default option for Android phones.
Narender Kumar
Always on the quest to learn and share the knowledge. Big fan of books (but not the self help ones) specially fiction. A grammar Nazi who loves to eat, cook, travel and watching thunderstorms.