Google Play introduces new fees and Level Up program for developers
Key takeaways
- New fee structure effective June 30 for US, EU, UK; Australia from Sept 30.
- New IAPs for existing users face a 30% cut; newer installs at 25%.
- Level Up program offers discounts for compliant developers; details pending.
- Google claims support for over 300 local payment methods across 195 markets.
Google Play's General Manager for games, Aurash Mahbod, outlined the company's new fee structure and the Level Up program aimed at developers. The updated fees took effect on June 30 for developers in the US, EU, and UK, with plans to expand to Australia on September 30, Japan and Korea on December 31, and globally by September 30, 2027. Notably, Google's billing fee of 5% was not included in the new table, meaning in-app purchases (IAPs) made by existing users via Google’s native billing will still be subject to the previous standard cut of 30%, while newer installations will see a reduction to 25%.
These policy changes are seen as incremental rather than revolutionary, allowing developers to reclaim a portion of the previous flat 30% cut if they choose alternative payment methods. The Level Up program offers additional discounts but requires developers to meet certain compliance and technical requirements. Mahbod refrained from commenting on whether Epic Games influenced the new policies or if these changes were a direct response to the legal battles with the company. He did mention, however, that Google has been developing many of these adjustments for several years.
Mahbod explained that the diverse fee structure reflects Google’s dual approach of lowering the standard 30% cut while introducing the Level Up program to incentivize quality development. He highlighted that the baseline service fee for new installs will drop from 30% to 20% automatically, requiring no action from developers. The Level Up program is crafted to reward those who invest in delivering premium experiences across devices, ensuring enhanced user engagement and retention.
Why it matters
Further, Mahbod emphasized the importance of the service fees, asserting that they support significant investments in the Android ecosystem and Play Store operations, which manage complexities over 195 markets with numerous local payment methods. He mentioned that Google continues to engage with developers for feedback, resulting in enhancements like improved AI placement controls and account management features. The goal remains to create value for all titles participating in the Level Up program while maintaining the integrity of in-game economies and promoting new-user acquisition strategies.
Original source
MobileGamer.biz
