Google cuts fees for digital goods and services

Chris Burns - Mar 16, 2021, 11:38am CDT
Google cuts fees for digital goods and services

Google revealed a new initiative this week to boost the growth power of the everyday average app developer. Starting on July 1, 2021, Google’s cutting service fees for Google Play. The Google Play fees for sales of digital goods or services will be cut to 15% for the first $1M (USD) of revenue every developer earns each year. That change will take effect starting on July 1, 2021.

Per Google’s Sameer Samat, VP, Product Management, this change will deliver a 50% reduction in fees for 99% of developers globally that sell digital goods and services with Google Play. This reduction in fees will be available to every Google Play developer “regardless of size.” No matter the dev size, the first $1M of total revenue earned each year will have its service fee set at 15%.

Given the changes in the latest Android update, previewed in the Android 12 Developer Preview, the future of android app development should be marginally better through the future. That, and the recent fervor on app store fees for app stores like Google Play and the Apple App Store should prove significant for developers of all sorts in the coming years.

It’ll be interesting to see if this change has any affect on the way Apple, Epic Games, and other app stores and developers do business. Given the rise of streaming platforms for games, will it become common business for each developer to run with whatever platform gives them the best app fee cut? Will streaming platforms allow any device to run any app, making app stores obsolete?

Take a peek at the timeline below to learn more about the recent app store wars and the way in which our collective future will unfold. Gather your strength, developers, the future will be even more strange than the past!


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