The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Alphabet Inc’s Google is slashing the fees it takes from subscription services on its app store following pressure from developers and lawmakers.
Beginning January 1, the Google Play Store will charge third-party subscription apps a 15% commission, the company said. Previously, subscription apps were charged 30% for first year, then 15% thereafter. Google also charged 15% for first $1 million in revenue.
Google said it’s making the change because “customer churn makes it challenging for subscription businesses to benefit†from getting a discount in the second year.
Google Play apps that aren’t subscription-based will still have to share 30% of their revenue, but that drops to 15% for the first $1 million in revenue as well.
The company says that 99% of developers qualify for a service fee of 15% or less.