Google reduces Play Store fees for subscription apps

The decision came after several criticisms about its fee structure from companies such as Spotify were mad

Google on Thursday said that they are lowering the fees that the subscription-based apps are needed to pay Play Store to 15 percent right from day one. The decision came after several criticisms about its fee structure from companies such as Spotify were made.
 
The issue was going on for a long time. Presently, the developers are required to pay a 30 percent subscription fee in the first year, and then 15 percent thereafter. Google in a blog post said, “We’ve heard that customer churn makes it challenging for subscription businesses to benefit from that reduced rate. So, we are simplifying things to ensure they can."
 
This whole new fee structure will kick in from the month of January 2022 and is expected to likely encourage the developers to switch from one-time payment modes to subscriptions. The E-book companies and popular music streaming services will be benefited as they used most of their sales to pay for content costs and will now be eligible for a service fee as low as 10 percent.
 
The alphabet-owned company has come under criticism from large firms such as Spotify Technology SA, Microsoft Corp and even from startups and smaller companies, which allege that Google's fees deprive consumers regarding choices and the push-up app prices.
 
This year in the month of March, the company had said that it will cut the service fee it charges from developers on its app store by half on the first $1 million they earn in revenue in a year and this is a move similar to iPhone maker Apple.

India Scanner News Network

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