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Tech giant Google announced Thursday that it will reduce the fees the company charges developers for subscription-based apps on the Play Store from 30% to 15%, effective January 1, 2022.
The move came after it was criticized by large companies such as Microsoft Corp, Spotify Technology SA, as well as startups and small businesses. They alleged that fees rob consumers of choice and drive up app prices.
Currently, developers pay a subscription fee of 30% in the first year and 15% in subsequent years.
“Our current service charges drop from 30% to 15% after 12 months of recurring subscription. But we’ve heard that customer attrition makes it difficult for subscription companies to take advantage of this reduced rate. So we’re keeping it simple to make sure they can, â€Google said in a statement.
“To help meet the specific needs of developers offering subscriptions, effective January 1, 2022, we are reducing the service fees for all subscriptions on Google Play from 30% to 15%, on day one.”
For developers offering subscriptions, this means that the first year subscription fee will be cut in half.
Whitney Wolfe Herd, Founder and CEO of Bumble Inc, said, “Our partnership with Google has been powerful for our business, helping us to scale and ultimately playing a key role in advancing our mission of empowering women in the world. world. The price change they announced will allow us to better invest in our products and allow users to go online with confidence.
Earlier this year, the company launched the Play Media Experience program to encourage video, audio, and book developers to help grow the Android platform by creating cross-device experiences. It has helped developers invest in these multi-screen experiences with service charges as low as 15%, Google said.
E-book companies and on-demand music streaming services, which use most of their sales to pay for content costs, will now be eligible for service charges as low as 10%.
Earlier in March, Google announced it would cut developer service fees on its app store in half, a move similar to that of iPhone maker Apple Inc.
(Edited by : Bivekananda Biswas)
First publication: STI
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