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Google Play Store: What are the new commission rates under the User Choice Billing program?

Earlier in September, Google expanded its “User Choice Billing” pilot program to India and a few other countries, allowing non-gaming apps on Play Store to offer an alternative billing system alongside Google’s in-app billing. If users choose to pay for an in-app purchase using the alternative system, the developer pays a commission that is reduced by 4 percent. However, since Google has varying slabs of commission rates, User Choice Billing will impact different types of developers differently. What are the new commission rates for developers in User Choice Billing? 6 percent (10 percent with Google Billing): In October 2021, Google announced that ebooks and music streaming services that are part of the Play Media Experience Program are eligible for a service fee as low as 10 percent. This category can now benefit from a 6 percent fee under User Choice Billing. 11 percent (15 percent with Google Billing):  Apps earning less than $1 million: In March 2021, Google announced a major policy change that reduced commissions from 30 percent to 15 percent for the first $1 million in revenue per year that developers earn. More than 99 percent of developers earn less than this, and with User Choice Billing their commission reduces to 11 percent. Subscription services: In October 2021, Google announced apps that offer subscriptions would only have to pay a 15 percent commission rather than the 30 percent they had to pay in the first year. These apps will now be able to benefit from an 11 percent rate under User Choice Billing. 26…

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