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Google says it plans to reduce the cut it receives in subscription-based apps on the Play Store for devices running Android software, in final concession to regulatory pressure that questioned whether the company was overpaying developers.
Inside a blog post On Thursday, Google said it will reduce subscription commissions to 15 percent for apps that users pay for through the Play Store. Currently, Google is taking a 30 percent cut for the first year of subscriptions and then reducing the rate to 15 percent from the second year. Starting in January, Google will abolish the two-step process and reintroduce the lower fee.
Google also said that some eBooks and music streaming services will be eligible for fees as low as 10 percent. It was not immediately clear which services or books would qualify, and how the exact percentage was determined.
In March, Google slashed the first $1 million a company earned from the Play Store from 30 percent to 15 percent in a move aimed at easing the financial burden for smaller developers. It came just after a similar commission cut from Apple.
The latest changes to the Play Store reflect reduced fees that Google and Apple charge developers for transferring their software to app stores. When Apple introduced the App Store in 2008, the company set its commission at 30 percent, and Google soon followed a similar fee structure.
But as companies build businesses based on apps that run on smartphones and tablet computers, a growing number of developers are beginning to question whether the 30 percent increase is excessive and is a byproduct of a lack of competition in the market for app stores.
Earlier this year, a group of 36 states and the District of Columbia sued Google. app store abused market power. Google is also fighting The lawsuit filed by Epic Games, the creator of the popular video game Fortnite, after the search giant removed the game maker’s app to bypass the payment system and avoid fees. Last week, Google filed a counterclaim against Epic.
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