Google slashed commission on all subscription-based apps on its app marketplace amid mounting pressure from regulators to make mobile app stores more accessible to developers.
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Starting January 1, 2022, the service fee for subscriptions in the Google Play store will reduce from 30% to 15%.
As per the current model, developers are required to pay a 30% commission on subscriptions to Google in the first year and then 15% post that. According to Google, 99% of developers qualify for a service fee of 15% or less.
“Digital subscriptions have become one of the fastest growing models for developers but we know that subscription businesses face specific challenges in customer acquisition and retention,” Google said in a blog post.
The tech giant is also slashing service fee to 10% in media experience programme in categories such as Ebooks and on-demand music streaming services. Google said the new rates recognise industry economics of media content verticals and helps both developers and the communities of artists, musicians and authors they represent.
Earlier, Google had reduced commissions from 30% to 15% on the first $1 million a developer earns after Apple’s similar move.
The move comes at a time when Google is facing scrutiny over its Play Store. Lawmakers around the world are evaluating whether tech giants are abusing their market power through their app store. In July, US state attorneys passed an antitrust lawsuit against Google, alleging the company of abusing its power through Play Store.
In a recent move, South Korea passed a law to curb in-app payments commission. Others have also proposed bills that could change the way app stores function