Google to lower in-app commission rate for developers after fees complaint
Tech giant Google will lower its
planned commission rate for app developers, following complaints from software
makers over steep fees.
Google said
it will levy a 15 per cent rate on in-app purchases to all developers for
annual sales up to $1 million and take a 30 per cent commission from revenues
over the $1 million mark.
The new policy will take effect in July.
A company official said 99 per cent of developers log less than $1
million annual revenue on the Play store, reports Yonhap news agency.
Google earlier
announced a plan to introduce the 30 per cent commission to all in-app digital
goods purchases in South Korea while making it mandatory to use its own payment
system for app purchases on its platform, starting January 2021.
The new billing policy caused fierce opposition from tech firms
and politicians and the company later delayed its implementation to September.
Last year lawmakers proposed bills that would ban app market
operators from imposing certain payment methods in mobile content transactions.
The tech giant has said that the service fee is crucial to
reinvest in its platform.
"We will do our best so that South Korean developers can
provide their products and services to over 1 billion users from some 300
countries around the world and achieve success in the global market," a
Google official said.
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