Google Play Store Fees for Subscription-Based Apps to be Slashed by Half Starting 2022 from 30% to 15%

Urian B., Tech Times 22 October 2021, 03:10 am

Google has decided to slash its Play Store fees for all subscription-based apps. The prices of these subscription-based apps are expected to be slashed in half in January of 2022. This means Play Store fees could go from 30% down to 15%.

Google Cuts Play Store Fees

According to a story by News18, the popular Alphabet-owned Google gave an announcement noting that it would start lowering the fees that certain subscription-based apps need to play on the Google Play Store. The price will reportedly drop down from 30% to 15%.

This drop in price will reportedly follow the criticism regarding its own fee structure from companies just like Spotify. As of the moment, developers are still required to pay a whopping 30% subscription fee during their first year then the price would go down to 15% after.

Google's Take on Subscription Fee Based Apps

Google announced in a blog post that they have heard that customer churn now makes it challenging for certain subscription businesses to be able to benefit from the said reduced rate. It was then noted that due to this, they are then simplifying things in order to ensure that they can.

The official update can be seen on Google's support page. The brand new structure will reportedly kick in from January 2021 and will most likely encourage developers to be able to switch from certain one-time payment modes towards subscriptions.

Startups and Smaller Companies Put Google Under Fire

It was noted that e-book companies as well as the on-demand music streaming services, which use a lot of their own sales in order to pay for content costs will be eligible for a particular service fee as low as 10%. It was noted that Google has already come under fire from certain large firms which include Microsoft and Spotify.

Google has also come under fire from other startups and different smaller companies. The heat regards to the allegation that the fees deprive consumers and even push up the official price of the apps.

Fees Cut on First $1 Million

In March 2021, Google noted that it will cut the service fee that it reportedly charges developers on its very own app store by half on the very first $1 million that developers earn in revenue for a whole year. This is a move that is similar to the iPhone maker, Apple.

As of the moment, Apple is claiming that it is helping save its users from $1.5 billion in app store fraud in 2020. This announcement was amidst the highly publicized legal battle between Apple and Epic Games. The legal battle reportedly helped highlight a number of App Store review practices as well.

The App Store, however, isn't perfect as certain Apple scam applications have been seen being sold on the esteemed App Store. Some of these scam applications reportedly cost over $10 a week in fees. It is important for Android and iOS users to know whether the app is fake or not.

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Written by Urian B.