Google is lowering the commission on subscriptions and goods sold through Google Play apps. Third-party developers may be able to make more money from their applications as a result.
There has been quite a bit of noise around the mobile app stores of both Google and Apple for some time. Many developers voice that both tech giants charge too much commission through their app stores. Now, Google is meeting developers halfway with the promise of lowering the commission it charges developers for subscriptions and merchandise purchased through their Google Play published apps.
As it stands, commission on subscriptions amount 30 percent in the first year of a bought subscription, dropping to 15 percent afterwards. Furthermore, 15 percent is taken from all digital goods and services with a turnover below $1 million. Digital goods and services with a turnover that exceeds $1 million are required to fork over 30 percent.
The big drop
As addressed by Google itself, these fluctuating fees create dissatisfaction among developers, who often depend on the Google Play app store to distribute their mobile applications.
Now, Google aims to resolve the problem by adjusting its commission policy. From the 1st of January 2022, the tech giant will reduce its subscription commission from 30 percent in the first year to a static 15 percent.
Additionally, the 15 percent commission for goods and services with a turnover of less than $1 million is lowered to 10 percent for specific product and service groups. Apps for music streaming and ebooks are included. According to Google, artists and writers stand to benefit.