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Google Lowers The Cut It Takes From Subscriptions On Play Store To 15 Percent
26 Oct, 2021 / 08:47 am / OMNES Media LLC

Source: https://in.mashable.com/

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Google has announced that it will lower the Google Play Store commissions from its current 30 percent to 15 percent for all subscription-based services starting next year.

The new policy, announced in a blog post, will take effect from January 1, 2022, and comes after increased scrutiny from regulators around the world, and after Epic Games took both Apple and Google to court over the app store purchases on the iOS app store and Google Play store respectively.

Although the verdict of Epic’s lawsuit largely favoured Apple, it managed to draw the attention of regulators from countries around the world who are looking into anti-competitive practices by the tech giants.

Currently, when a customer buys a subscription through Google Play Store, 30 percent of the transaction is taken by Google for the first year, which is reduced to 15 percent from the second year. The new policy eliminates the increased cut at the start of the subscription, allowing developers to take a larger cut or reduce prices without taking a hit to attract new subscriptions.

"To help support the specific needs of developers offering subscriptions, starting on January 1, 2022, we're decreasing the service fee for all subscriptions on Google Play from 30 per cent to 15 per cent starting from day one," the company said in the blog post.

Along with subscriptions, purchases of on-demand music streaming services, and eBooks, where “costs of the content account for the majority of the sale value” will be eligible for a much lower service fee, which can be as low as 10 percent.

Early this year, the tech giant also cut the share of revenue it pocketed from 30 percent to 15 percent out of the first million dollars earned by a developer or a company through the play store.

At the same time, Apple had also announced a cut in commission it took from developers on the iOS app store.