Google Will Cut Its Commission on App Subscriptions by Half

As pressure rises on tech giants to relax their grip on their online marketplaces, Google announced Thursday that it will cut its app store fees. Starting in January, Google Play’s subscription commission will be cut in half, to 15%, vice president of product management Sameer Samat announced in a blog post.

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Google to Cut Its App Subscriptions Commission

Google currently receives a 30% cut for the first year of a subscription, followed by a 15% cut for renewals. Businesses would not have to wait for users to renew – which they may or may not do – to benefit from a cheaper commission under the new fee structure, according to Google.

Google and Apple, whose operating systems run on 99 per cent of the world’s smartphones; have maintained that the app store commissions they receive are appropriate compensation for delivering secure platforms. Developers, on the other hand, are outraging by the lost profits, and regulators are critical of the tech giants’ monopoly on their online markets.

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Apple has reduced commissions from 30% to 15% in circumstances where an app generates less than $1 million (approximately Rs. 7.4 crores) per year. In September, a US judge ordered Apple to relinquish control over its App Store payment system; dealing a blow to the global tech giant spurred by its antitrust lawsuit with Epic Games, the maker of Fortnite.

Epic filed the lawsuit in an attempt to shatter Apple’s monopoly on the App Store; accusing the company of acting like a monopoly. The decision has been appealed by both Apple and Epic.

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