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Taking a cut on app store transactions has become a controversial topic after the big rift between Apple and Epic Games. Apple App Store and Google Play (Android) are the top 2 players in that world. Their argument is that they created the platforms, meaning they should get their pound of flesh for every purchase. Makes sense. The problem for the developers is that the pound of flesh is currently 30%. Is that too high? Maybe.
Google has stepped up with a big announcement. Starting on 1 July 2021, Google will halve their commission to 15% for the first $1 million. They state that the extra funds will help developers phase up their growth by hiring more engineers.
Apple had already implemented this last November so I guess Google had to follow suit. Smart move by Apple as they now look like the good guys.
The problem is that the really successful apps (mostly gaming) bring in hundreds of millions in revenue and still have to give these platforms 30%. It does sound a bit excessive. I suspect over time, as the apps become more powerful, the platforms will have to rethink their pricing.
