• About
  • Contact
Wednesday, May 18, 2022
  • Login
Next Big Brand
  • .
  • News
  • Marketing
  • Tech
  • Insight
  • Interviews
  • Internet
  • Startup
  • OTT
  • Industries
  • FMCG
  • CRYPTOCURRENCY
  • Retail
No Result
View All Result
Next Big Brand

Google Play Reduces Services Fee by 15%

Abdul Kadir Khan by Abdul Kadir Khan
March 17, 2021
in News, Internet
Reading Time: 4 mins read
A A
0
IMG 20210317 WA0002

If you are selling digital goods and other services through Google Play Store, there is good news for you. Your income will increase by 15% from July 1, 2021. Yes, you read it right. Google is reducing play store commission from 30% to 15%. Recently, App Store also reduced service charges to woo more creators. Experts believe that Google reduced the service charges due to Apple’s earlier move.

Google, the Andriod owner, released the statement on Tuesday that Google Play Store is bringing new service charges that are 15% less than the earlier commission. Currently. Play Store cut 30% earnings on its platform as service charges.

A recent reduction will not be applied if you earn more than $1 million from Play Store. That means if your earning crosses $1 million, the company will charge a 30% commission on every dollar earned above $1 million.

How will Current Service Charge Reduction Help the Developers?

As per Google’s estimation, the current commission reduction will help 99% of developers that sell digital goods and services on the Play Store. Google also revealed that 97% of apps available on the Play Store don’t pay any service commission due to no earning.

App Store has slightly different service charges condition. Apple released the statement that it will charge a 15% service fee if earnings are less than $1 million. If a developer’s earning crosses $1 million, a 15% cap will not be applicable in such a situation. That developer has to pay a 30% commission on all earning, whereas Play Store will charge a 30% commission on the money earned above $1 million.

Talking about the recent changes, Sameer Samat, VP of Google Play and Android, said:

“We’ve heard from our partners making $2 million, $5 million, and even $10 million a year that their services are still on a path to self-sustaining orbit,”

He further added:

“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. We believe this is a fair approach that aligns with Google’s broader mission to help all developers succeed.”

The recent Google Billing System brought lots of losses to Indian Startups. These startups were demotivated due to the hefty service charges cut by the Play store. Google understood the situation and helped this startup through this latest commission reduction news.

More than 150 startups banded together last year after Google said it will collect as high as 30% cut on in-app purchases in a range of categories made by Android apps.

Indian Startups criticized Google for such harsh billings. Google discussed the situation with many Indian firms and finally concluded that billing systems have to change.

app store logo

Why are Indian Firms still not Happy with Google?

Some of the Indian firms are still not happy with Google’s move. They are calling it a “PR stunt”. Paytm CEO Vijay Shekhar Sharma, while talking with TechCrunch, said:

“Established firms will still have to pay an exorbitant amount of fee to Google. Today’s announcement by Google further raises the question whether Google plans to address concerns raised by serious internet firms at all.”

He further said:

“They are basically saying that as soon as you build a business larger than $1 million — which is a very low bar — you are going to pay a 30% fee, which after taxes, becomes 44%.”

It should also be noted that Google Play and Paytm’s business war is on since the time Play Store banned a few Paytm apps for not following the store guidelines. later Paytm decided to launch its own app store to compete against Google.

Sharma heavily criticized Google and also asked google to solve real issues developers are facing due to the Play Store monopoly.

He further added:

“We don’t have any other operating system or distribution platform. They effectively control the destiny of every app developer in the country. Earlier India was powered by Android, then we became dependent on Android, and now it is controlled by Android.”

Answering a question related to other issues raised by the developer community of India, Google’s Samat said:

“We look forward to seeing more businesses scale to new heights on Android, and to further discussions with the Indian developer community to find new ways to support them technically and economically as they build their businesses.”

Android controls 99% smartphone market in India, as per the Counterpoint research finding. said Sharma.

Previous Post

Kalyan Jewellers IPO Opens

Next Post

Nazara IPO Gets Thumbs Up from the Analysts

Abdul Kadir Khan

Abdul Kadir Khan

Abdul Kadir Khan is a Content Writer at Next Big Brand. Hails from UP. Postgraduate in Computer Science. Content Maniac and Trainer. Love to write about startups, Brands, and Trending Tech.

Related Posts

Sameer Nigam PhonePe CEO
News

PhonePe To Acquire WealthDesk For Around $50 Million & OpenQ For Nearly $25 Million

May 18, 2022
Smytten Founders
News

D2C Sampling Startup Smytten Raises Rs 100 Crore in Pre-Series B Led By Fireside Ventures

May 17, 2022
paytm mall
News

Jack Ma Exits Paytm Mall, Sells 43% For Rs 42 Crore Valuation Down To Rs 100 Crore

May 17, 2022
Zerodha Team
News

After Meesho, Nearly 950 of Zerodha’s 1100 Employees Will Work From Home Permanently

May 16, 2022
Elon Musk Twitter
News

Elon Musk Puts On Hold $44 Billion Twitter Acquisition Deal

May 13, 2022
Dineout Founders
Food

Swiggy Acquires Times Internet Backed Dineout For $200 Million

May 13, 2022
Next Post
IMG 20210317 WA0001

Nazara IPO Gets Thumbs Up from the Analysts

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

BROWSE BY TOPICS

Acquiring amazon Apple brand story BYJU Ravindran Byjus byjus news byjus the learning app Cryptocurrency Edtech Startups Elon Musk facebook fintech news Flipkart funding Good Glamm Group google Indian OTT Platforms Indian Unicorn Indian Unicorns Indian Unicorns of 2021 Mukesh Ambani Netflix NFT NFT Collection Non Fungible Tokens OYO Paytm Reliance Retail Startup Acquisition Startup IPO startup news india Startups startups in india Swiggy Tiktok TikTok India Twitter Unicorns of 2022 Unicorns of India Unicorn Startups Upgrad YouTube Zomato Zomato App

Instagram

Follow Me!

Recent News

  • PhonePe To Acquire WealthDesk For Around $50 Million & OpenQ For Nearly $25 Million
  • D2C Sampling Startup Smytten Raises Rs 100 Crore in Pre-Series B Led By Fireside Ventures
  • Jack Ma Exits Paytm Mall, Sells 43% For Rs 42 Crore Valuation Down To Rs 100 Crore

Latest News

Sameer Nigam PhonePe CEO

PhonePe To Acquire WealthDesk For Around $50 Million & OpenQ For Nearly $25 Million

May 18, 2022
Smytten Founders

D2C Sampling Startup Smytten Raises Rs 100 Crore in Pre-Series B Led By Fireside Ventures

May 17, 2022
  • About Us
  • Privacy Policy
  • Terms and Conditions
  • Disclaimer
  • DMCA Policy
  • Our Team
  • Contact Us
  • Sitemap

© 2019 NBB. All Rights Reserved.

No Result
View All Result
  • .
  • News
  • Marketing
  • Tech
  • Insight
  • Interviews
  • Internet
  • Startup
  • OTT
  • Industries
  • FMCG
  • CRYPTOCURRENCY
  • Retail

© 2019 NBB. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.