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Google plays the game of feesINTL

Google plays the game of fees

Starting July 1, Google (GOOGL) is dropping its Google Play app store fees to 15% on the first million dollars that listed companies make annually from downloads and in-app purchases. Developers who ball hard by crossing the 1m mark will be charged the standard 30% fee on the additional income.

Many stand to benefit from this news — 99% of developers on Play will see a 50% reduction in fees. So, does this mean that Google is suddenly the Mother Teresa of tech, or is it just trying to score some PR brownie points?

The answer may be good old market positioning, as it comes soon after a similar one by rival Apple (APPL), which announced in December that it was dropping its fees for developers on its app store.

why it matters
Google and Apple have faced increased regulatory scrutiny over their app store fees and control of smartphone operating systems. Both are also being sued by Epic Games over alleged app payment monopolization. In fact, some US states have even proposed bills to allow developers to avoid fees altogether by using their own payment processing software!