Google to cut App Store fees for developers to 15%
Google said it plans to cut the reduction in subscription apps in its Play Store for devices running its Android software, in the latest concession to regulatory pressure contesting whether the company has overcharged developers.
In a blog post On Thursday, Google announced that it would reduce its commissions on app subscriptions that users pay through its Play Store to 15%. Currently, Google applies a 30% reduction for the first year of subscriptions and then reduces the rate to 15% from the second year. Google will eliminate the two-step process starting in January and apply the lower fees from the start.
Google has also said that certain e-books and music streaming services will be eligible for fees as low as 10%. It was not immediately clear which services or books would qualify and how the exact percentage was set.
In March, Google cut its share of the first million dollars a business earned through the Play Store from 30% to 15%, in a bid to ease the financial burden on small developers. It came on the heels of a similar commission cut from Apple.
The latest changes to the Play Store reflect the reduced fees Google and Apple charged developers to distribute their software to their app stores. When Apple introduced the App Store in 2008, the company set its commission at 30% and Google quickly followed with a similar pricing structure.
But as companies built businesses based on apps running on smartphones and tablets, a growing number of developers began to question whether a 30% hold was excessive and a by-product of the lack of competition in the market. app stores.
Earlier this year, a group of 36 states and the District of Columbia sued Google, claiming its app store had abused its market power. Google is also fighting a lawsuit filed by Epic Games, the creator of the popular video game Fortnite, after the search giant took down the game creator’s app for bypassing its payment system and avoiding charges. Google last week filed a counter lawsuit against Epic.