Technology

Google halves its Play Store fees for subscription services

Google, currently under pressure from various procedures targeting anti-competitive practices in its Play Store, will reduce the amount of commissions it assumes for sales in its mobile application store. As of January 1, 2022, applications that run on a subscription model will be subject to a 15% rate, regardless of their billing on the platform, from the first euro. Applications for the sale of digital books and the transmission of music can benefit from a minimum fee of 10% under certain conditions.

Since July, Google has reduced the service fees charged to developers in its app store from 30% to 15% on the first million dollars in revenue in a year. Apple has started a similar movement.

The 30% rule costs cracks everywhere
Google applied this 30% fee to all payments that go through its Play Store since the launch of its store, knowing that developers are forced to use Google’s payment services integrated into the applications. But various procedures, from US states and developers, including Epic Games, which publishes the Fortnite game, have prompted Apple and Google to review their pricing policies. Actions against app stores were also launched in South Korea, Japan and the United Kingdom. There is strong pressure to force platforms to accept third-party payment services for in-app payments.

For subscription-based apps like streaming sites, Google’s policy, like Apple’s, was to charge a 30% commission in the first year and 15% in subsequent years. The company says it listened to developers, for whom “benefiting from the reduced rate is difficult due to the churn rates.”

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