Also, both Apple and Google have been subject to antitrust lawsuits and investigations over their grips on their respective app marketplaces. First of all, Google is almost directly matching-slightly beating, actually-Apple's offer to developers as the App Store and Google Play compete directly. This change is likely not born entirely of altruism, however. After all, an extra 15 percent of $1 million is $150,000, which is not a small amount of money to any but the largest and most successful companies. To that end, the author of Google's developer blog post (Product Management VP Sameer Samat) claims that developers who are pulling in $2 million, $5 million, and "even $10 million" each year have said to Google that this change will make a difference in making their businesses more sustainable, even though they make significantly more than $1 million. In Apple's, a developer making $800,000 forks over 15 percent on that amount, but if they make $1.2 million, they pay 30 percent on all $1.2 million, not just $200,000. So in Google's model, a developer who earns $1.2 million on an app pays 15 percent on $1 million, then 30 percent on $200,000. Google still charges 15 percent on that first million even if the developer makes $5 million. That's because Apple applies its lower 15 percent rate to a developer until that developer exceeds $1 million in revenue in a given year, at which point the higher 30 percent number is applied to all of that developer's earnings. But it's actually different in a way that could be consequential for many developers it's arguably a little more generous.
Further Reading Apple drops its cut of App Store revenues from 30% to 15% for some developersOn the surface, this looks like a very similar deal to what Apple announced late last year when it declared that developers making under $1 million will soon begin paying just 15 percent to the platform rather than the historical 30 percent.
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