Google has said that it is lowering its commission fees for all subscription-based businesses on the Play Store. Earlier, Google used to charge 30% of the transaction amount from the developers. However, following the pressure from Senators, it followed Apple into lowering fees from 30% to 15% for developers who earned less than $1 million through the Play Store. Now, the company has expanded lowered 15% Play Store fees to subscription-based apps, and some “eligible ebooks and on-demand music streaming services” will enjoy an even lower fee of 10%.
Google says that 99% of the developers already qualify for the program it launched in May 2021. However, not all the apps are free and ad-supported. For those, it is launching what it’s calling the “Play Media Experience Program.” Developers will be able to apply through this portal and Google will lower the Play Store commission fees to 15% or 10% for them. The company says that it has “heard that customer churn makes it challenging for subscription businesses to benefit from that reduced rate.” So, the company says that developers can apply to the program. When asked about how developers will be able to know if they qualify for the reduced fees, Google in a statement to The Verge said, “developers can review program guidelines and express interest now and we’ll follow up with more information if they are eligible.”
Google, and Apple, are under scrutiny for monopolizing their app stores and services. Countries have started taking legal action against the tech giants — South Korea recently asked Google and Apple to allow third-party payment systems on their App Store that will effectively destroy their commission system.
Google says the new fees will come into effect starting January 1, 2022.
Source: Android Developers Blog
Via: The Verge