Google will cut rates for certain types of apps on its store

Google will cut rates for certain types of apps on its store

Starting in January, the fees for developers of subscription apps from the Play Store will drop from 30% to 15% in the first year. Commissions for music streaming services and ebooks will drop by as much as 10%, the company announced

Google (Photo by Olly Curtis / Future via Getty Images) Google will lower the fees for developers of certain types of apps on the its Play Store which so far were 30% in the first year and 15% in the following years. Starting from January 2022, the rates for developers of subscription apps will drop from 30% to 15% and for music streaming services and ebooks by up to 10%, the company announced yesterday, acknowledging that for these apps "the costs content accounts for the majority of sales. ”

Google said early customer quit makes it difficult for subscription companies to benefit from the reduced rate for subsequent years. For this reason it is "simplifying things to make sure we can do it," the company said in a statement.

The move came after criticism from big companies like Microsoft, Spotify, but also from smaller companies , according to which Play Store taxes deprive consumers of choice and raise app prices. For developers offering subscriptions, this change means first year subscription fees will be halved.

Google will always decide which apps are eligible for this 'discount' and has not yet explained these requirements in detail. The company already has a program, set up in March, where the first million dollars a developer earns through Google requires a 15% tax. Also, with so many apps being ad-based and therefore free, the company says 99% of developers “qualify for a service fee of 15% or less”.

Google ad follows in the footsteps of Apple which in the past two years has already reduced its revenue by 30% to 15% in many cases, including apps that earn less than a million dollars a year. The two companies both faced lawsuits and massive public pressure over their practices on their application stores.

In July, 36 US Attorneys General announced an antitrust lawsuit against Google, claiming that the company allegedly abused its power over app developers through its Play Store on Android. The two companies have also been sued by Fortnite maker Epic Games for their app store fees and other practices.

US lawmakers also proposed a series of bills to coerce Apple and Google to make even more lasting changes to app store policies. The Open App Markets Act would force companies' app stores to allow developers to use other payment systems, potentially helping them to forgo predefined fees. South Korea has already recently ruled that Google must allow third party payments on Google Play.

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