Google halves its Play Store commissions for subscription-based services

Par ediallo - 25 October, 2021 - 07:01

Faced with legal and regulatory pressure, Google is trying to calm things down by lowering the fees it charges on sales generated by the Play Store.

Google, currently under pressure from several proceedings targeting anti-competitive practices regarding its Play Store, will lower the amount of commissions it takes on sales in its mobile application store.

From January 1, 2022, applications operating on a subscription model will be subject to a 15% levy, regardless of their sales on the platform and this from the first euro. Apps selling digital books and streaming music will be able to benefit from a minimum rate of 10% under certain conditions.

Since July, Google has reduced the service fee charged to developers on its app store, from 30% to 15% on the first million dollars of revenue recorded in a year. Apple has initiated a similar move.

THE 30% FEE STANDARD IS CRACKING ON ALL SIDES

Google has been applying the 30% fee on all payments through its Play Store since the launch of its store, knowing that developers are forced to use Google's payment services integrated into the apps.

But several proceedings, from U.S. states and developers, including Epic Games, which publishes the game Fortnite, have led Apple and Google to revise their pricing policy.

Actions have also been launched against app stores in South Korea, Japan and the UK. There is strong pressure to force platforms to accept third-party payment services for in-app payments.

For subscription-based applications, such as streaming sites, Google's policy - like Apple's - was to charge a 30% commission in the first year, and 15% in subsequent years.

The company says it has heard from developers, for whom "benefiting from the reduced rate is difficult because of attrition rates".

RAPHAËLE KARAYAN