Google Lowers App Market Payment Commission from 30% to 15%

[Asia Economy Reporter Donghyun Choi] Google has decided to reduce the current 30% app market commission to 15% for certain revenue brackets.

According to political circles on the 15th, Google Korea submitted this commission reduction plan to members of the National Assembly's Science, Technology, Information and Broadcasting Committee on the same day.

The reduced commission applies to small and medium-sized developers with annual sales of $1 million (approximately 1.1 billion KRW) or less. For example, if a company records sales of 1 billion KRW, it previously had to pay Google a commission of 300 million KRW, but going forward, it will only need to pay 150 million KRW.

According to Google Play Store statistics, developers with sales under $1 million account for 99% of the entire Google Play Store. It is practically all app developers. Google also plans to charge a 30% commission only on the portion exceeding $1 million in sales for large app developers whose sales exceed $1 million. The new commission policy will take effect on July 1.

Meanwhile, Apple also reduced the commission for small and medium-sized developers with annual sales under $1 million from 30% to 15% last November.