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Google cuts store commission for subscription apps

With increasing regulatory pressure on the Google Play Store for Android, conducted The search giant once again changes regarding its business structure.

The company announced that more categories of applications would be eligible to pay much less than the usual 30 percent commission.

The company explained that all subscription-based apps now pay a 15 percent commission.

E-books and on-demand music streaming services are also said to be eligible for a commission as low as 10 percent.

According to the company, the reason behind the cheaper prices of e-books and music streaming apps is that content costs represent the majority of sales.

Although it is not mentioned, regulatory pressure and public pressure from companies like Spotify is one of the reasons.

Currently, signing up for a Spotify subscription via Android will redirect you to the Spotify website to enter your payment information.

The lower commission structure for streaming music is still at the company’s discretion, both for eligible apps and how low that commission is.

Developers can find out if they qualify for a reduced commission by reviewing the program’s guidelines and expressing interest, and the company provides more information if they do.

For subscriptions, the company’s previous structure was similar to that of Apple, 30 percent in the first year and 15 percent thereafter.

The new change simplifies this by offering 15 percent immediately. And it could potentially be a strong incentive for developers to move from one-time payments to subscriptions.

The company says one reason for the change is that volatility makes it difficult for businesses that sign up to take advantage of such a lower price.

Read also: Pixel 6 is concerned with camera hardware, not just the software side

Google’s commission reduction came as a result of pressure

The company has a program in which the first $1 million a developer earns through Google requires a 15% commission, created in March 2021.

Since many of the applications are ad-based and therefore free. The company claims that 99 percent of developers qualify for a service fee of 15 percent or less.

Last week, Sundar Pichai spoke about the importance of App Store revenue to the company’s overall Android business model.

He said: We do not take a commission from the sales of devices, nor a commission from the revenues of the communication company. So we have to preserve our ecosystem. The store is a major source of revenue, and it supports Android as a whole.

Read also: Google should develop a pixel watch

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