Google reduces Play Store fees from 30 per cent to 15 per cent

Google announced on Thursday that it will reduce the service fee for all subscriptions on Google Play from 30 percent to 15 percent from January 1. It also said that it is reducing service fees to 10 percent in the Media Experience program in the ebooks and on-demand music streaming services category.

Announcing the new Play Store fees, Google said in a blog post, “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% to 15%, starting from day one. For developers offering subscriptions, this means that first-year subscription fees will be cut in half. We’ve already gotten positive feedback from our developer partners on this change,”

In addition, Google announced that ebook and music streaming apps would be eligible for a service fee as low as 10 percent.

Apple also offers reduced 15 percent subscription fees from day one, but that’s limited to developers who are part of its App Store Small Business Program, which is available to those who earn up to but don’t exceed $1 million in a calendar year.

Google has decided to reduce Play Store commission for apps that offer subscription services after widespread pushback from developers. The company is also facing increased regulatory pressure much like Apple.

Apple also offers reduced 15 per cent subscription fees from day one, but that’s limited to developers who are part of its App Store Small Business Program, which is available to those who earn up to but don’t exceed to $1 million in a calendar year.

South Korea recently passed an “anti-Google” law meant to curb in-app payment commissions.

In India, start-ups have been claiming that Google abuses its monopoly, enforcing the billing system, and takes a 30 per cent commission on the transactions. Google had said this wasn’t new and its payments policy has always required this.

It had said Google Play billing had always taken a 30 per cent commission on these transactions.