Technology giant Google will soon be lowering the app store fees for all subscription-based services to 15 percent from existing 30 percent. The new rates will be applicable from January 1, 2022. Reportedly, Google is facing high scrutiny over its app store practices in India and across the world.
Google currently charges a 30 percent fee for all subscription services which automatically reduces to 15 percent after 12 months of a recurring subscription.
“We’ve heard that customer churn makes it challenging for subscription businesses to benefit from that reduced rate. So, we’re simplifying things to ensure they can” said Sameer Samat, Vice President, Product Management, Google in a blogpost.
Google stated that the ebooks and on-demand music streaming services, where “content costs account for the majority of sales”, will witness further decrease in its service fee, and can go as low as 10 percent.
“The new rates recognize industry economics of media content verticals and make Google Play work better for developers and the communities of artists, musicians and authors they represent” Samat said.