Google cuts Play Store commission on subscriptions to 15%, to “Address Developer Needs”
- ByStartupStory | October 22, 2021
Google, a US-based search engine giant has announced that it will reduce the service charge for all subscriptions on the Play Store for app developers from 30 per cent to 15 per cent with effect from January 1, 2022.
Earlier, subscription apps were charged 30 percent for the first year, then 15 percent after that.
“Digital subscriptions have become one of the fastest growing models for developers, but we know subscription businesses face specific challenges in customer acquisition and retention,” the company said in a blog post.
The post said, “To support the specific needs of developers offering subscriptions starting January 1, 2022, we will reduce the service charge for all subscriptions on Google Play from 30 percent to 15 percent from day one.” are doing.”
In addition, Google announced that ebooks and music streaming apps will be eligible for service fees as low as 10 percent.
Apple also slashes the subscription fee by 15 percent from day one, but it’s limited to developers who are part of its App Store small business program, which is available to those who make no more than $1 million in a calendar year.
Google has decided to reduce the Play Store commission for apps that provide subscription services after widespread pushback from developers. The company is also facing increased regulatory pressure like Apple.
South Korea recently passed an “anti-Google” law aimed at curbing in-app payment commissions.
In India, start-ups have been claiming that Google abuses its monopoly, enforces a billing system, and charges 30 percent commission on transactions.
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