Google to halve app subscription fee to 15%
22.10.2021
Google is slashing the fees it takes from subscription services on its app store following pressure from developers and lawmakers.
From Janaury 1, the Google Play Store will charge thirdparty subscription apps a 15% commission, the company said Thursday. Previously, subscription apps were charged 30% for the first year, then 15% thereafter. Google also charged 15% for the first $1 million in revenue. Google said it’s making the change because “customer churn makes it challenging for subscription businesses to benefit” from getting a discount in the second year. “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,” Sameer Samat, a VP at Google, said in a blog post.
The company also faces broader criticism that the Google and Apple app stores have grown too powerful and force developers to play by restrictive rules. Apple also charges 15% for subscriptions after the first year, but hasn’t lowered the cut from 30% in year one. BLOOMBERG
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