Alphabet’s Google will cut the service fee it charges developers on its app store by half on the first $1 million (roughly Rs. 7 crore) they earn in revenue in a year, after a similar move by rival Apple last year.
Both the companies have come under fire from large firms such as Microsoft, Spotify, as well as startups and smaller companies, that allege the fees deprive consumers of choices and push up app prices.
“Whether it’s 15 percent or 30 percent, for apps obtained through the Google Play Store, developers are forced to use Google’s in-app payment services,” Epic said.
Epic has been at loggerheads with Apple since August when the game maker tried to avoid paying fees on the iPhone maker’s app store by launching its own in-app payment system, which prompted Apple to ban Fortnite from its store.
Data analytics firm Sensor Tower estimated that it could have cost Google about $587 million (roughly Rs. 4,260 crore) — or about 5 percent of the $11.6 billion (roughly Rs. 84,190 crore) it earned from Google Play last year — had the service fee cut come into effect in 2020.
© Thomson Reuters 2021
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