Google cuts Play Store fees on subscription services to 15%

Google said on Thursday that it’s lowering service fees in its app store after a similar move by Apple, as both companies face pressure from lawmakers and regulators to make their mobile stores more accessible to developers, CNBC reports.

The service fee for subscriptions in the Google Play store will drop from 30% to 15% from day one, Google said in a press release. Under the current model, developers must pay a 30% cut on subscriptions to Google for the first 12 months before the commission drops to 15%.

Google said 99% of developers would qualify for the lower service fee.

The company also said on Thursday that it’s introducing a program to allow e-books, music streaming services, and other apps that pay for content to access fees as low as 10%. Apple doesn’t make exceptions for those kinds of apps and doesn’t offer a 10% fee to developers in its app store.

Apple, which has received more regulator attention over its app store than Google, over the past two years cut its take from 30% to 15% in many cases, including for apps making less than $1 million per year, news apps, and certain premium video streamers that participate in an Apple program. But Apple still charges 30% for the first year of a subscription, meaning that Google’s app store may be more competitive for subscription-based apps.


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