Google will halve the amount it takes from Android app developers in the Google Play store following a similar move by Apple last year, as the two companies face legal challenges with these fees.
Google’s vice president of product management, Sameer Samat, said this would mean that 99% of developers worldwide would see a 50% reduction in fees.
New 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,” he said.
The fee goes back to 30% after the first $1m, and Samat said applying it to all app developers – not just the developers making less than $1m per year was a “fair approach”.
“Android and Google Play are always listening to our fellow engineers from around the world and we continue to monitor their input as we build and run an environmental program,” he said.
Why Are Tech Companies Slashing Fees?
Apple brought a similar cut to its cost of the Apple App store in January this year.
Both companies are facing legal action from Epic Games, the creators of Fortnite, after Fortnite was kicked off both the Apple App Store and Google Play Store in August last year because it was bypassing the companies’ in-app payment methods in favour of its own cheaper direct billing that prevented Apple and Google taking a share.
Responding to the announcement, an Epic Games spokesman said the reduction was likely to “alleviate a small part of the financial burden developers have been shouldering” but said it did not address the root of the issue.
“Whether it’s 15% or 30%, for apps obtained through the Google Play Store, developers are forced to use Google’s in-app payment services. Android needs to be fully open to competition, with a genuinely level playing field among platform companies, app creators, and service providers,” she said.
“Competition in payment processing and app distribution is the only path to a fair app marketplace.”
Allegations
Epic alleges that Google and Apple have harmed app developers and consumers in Australia by blocking competitions and innovations by preventing app sharing options on iPhones and Android devices as well as in-app payments.
Google declined to comment on the court case.
In August, an Apple spokesperson said Epic’s actions in seeking to bypass the in-app purchasing system were expressly about violating App Store guidelines designed to protect customers.
“Their reckless behaviour made pawns of customers, and we look forward to making this clear to Australian courts,” she said.
Epic has since launched legal action in the US, the UK and Australia, and has filed an antitrust complaint against Apple in the EU.
Both cases will be heard in the Australian federal court next week, with the US case due to be heard in May.
