Google said it plans to cut the cut on subscription-based apps on its Play Store for devices running its Android software, as a recent admission to regulatory pressures on whether the company has overwhelmed developers.

In a blog post On Thursday, Google announced that it would reduce its commission for subscriptions to apps that users pay through its Play Store to 15 percent. Currently, Google is cutting the rate by 30 percent for the first year of subscriptions and then lowering the rate to 15 percent from the second year. Google will get rid of the two-step process from January and apply the lower fee from the start.

Google also said that some eBooks and streaming music services are eligible for fees as low as 10 percent. It was not immediately clear which services or books were eligible and how the exact percentage was determined.

In March, Google reduced its revenue from the first $ 1 million a company made through the Play Store from 30 percent to 15 percent to ease the financial burden on smaller developers. A similar commission cut from Apple followed.

The latest changes to the Play Store reflect the reduction in fees that Google and Apple have charged developers to push their software through their app stores. When Apple launched the App Store in 2008, the company set its commission at 30 percent, and Google soon followed suit with a similar fee structure.

However, as companies built businesses based on apps running on smartphones and tablets, more and more developers began to wonder if a 30 percent payment was excessive and a by-product of the lack of competition in the app store market was.

Earlier this year, a group of 36 states and the District of Columbia sued Google, alleging it App Store has abused its market power. Google is also fighting a lawsuit from Epic Games, creator of the popular video game Fortnite after the search giant removed the game maker’s app to bypass its payment system and avoid fees. Last week, Google counterclaimed Epic.

Source link

Leave a Reply