Amazon will take less money from small developers

Amazon announces that its commission imposed on small developers will be lower from the end of the year. At the same time, the American company offers them an offer to more easily access its services in the cloud.

Amazon undoubtedly had little choice: in order not to appear too out of step with Apple and Google, who have taken identical decisions, the American company has also just announced a review of its commercial policy at the regard to small developers. In a press release published on June 15, 2021, Amazon announced a reduction in the commission levied on them.

Concretely, from the fourth quarter of 2021, the commission rate on the sales of applications or in-app payment, in exchange for Amazon’s services, will be reduced to 20%, instead of 30%. Developers whose annual income does not exceed $ 1 million will be eligible. This measure is part of a new support program for small businesses on the Amazon Appstore.

Mobile applications offered on the Amazon store. // Source: Amazon

The Amazon Appstore is the application store overseen by Amazon and whose software offering is aimed at the Android operating system. It is the equivalent of the App Store for iOS, which is owned by Apple, or of Google Play for Android, under the aegis of Google. The applications on the Amazon Appstore are aimed at owners of devices running on Fire OS, a version derived from Android.

In addition to this reduction of ten points, Amazon offers these same small developers a commercial offer to take advantage of Amazon Web Services, that is to say the various products and services of the American company in the cloud. Credits of up to 10% of the income earned by small developers can thus be used to benefit from the advantages of Amazon’s cloud at a lower cost.

Similar drop at Apple and Google

The decline announced by Amazon illustrates the battle between the three tech giants to expand their software ecosystem and encourage companies to develop for them. In November 2020, Apple started the ball rolling by announcing a revised rate of 15% of its commission for small developers, instead of 30%. Google followed in March, with an equivalent reduction.

These decisions also occur in a context where Google and Apple are accused of having monopolistic and anti-competitive practices. This reduction in commissions is therefore also perceived like a maneuver on their part to mitigate criticism of them, while politicians and regulatory authorities, in the United States and in Europe, are increasingly interested in what is happening on the stores.

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