Google said on Thursday that it’s lowering service fees in its Google Play store after a similar move by Apple, as both companies face pressure from lawmakers and regulators to make their mobile stores more accessible to developers.
The service fee for subscriptions in the Google Play store will drop from 30% to 15% from day one, Google said in a press release. Under the current model, developers must pay a 30% cut on subscriptions to Google for the first 12 months before the commission drops to 15%. According to Google, 99% of developers qualify for a service fee of 15% or less.
“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,” Google said in a blog post.
The tech giant is also slashing service fees to 10% in media experience programs in categories such as Ebooks and on-demand music streaming services. Google said the new rates recognize industry economics of media content verticals and help both developers and the communities of artists, musicians, and authors they represent.
Indian internet entrepreneurs have been up in arms against both Google and Apple over the in-app commission charged by the two technology giants, saying they do not allow other payment mechanisms that charge low to nil commissions to be used thereby harming their business.
With this development, Google could be hoping to change its public image amid mounting regulatory scrutiny over how the company manages its app store and its relationship with third-party developers.
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