From 30 percent to 15 percent
Google today announced that it will follow Apple’s lead in lowering the amount of money app developers must pay for mobile subscriptions processed through the Play Store. Back in June 2016, Apple introduced a new policy for its App Store to encourage developers to sell subscriptions as in-app purchases within iOS. That involved reducing the standard App Store transaction fee from 30 percent to 15 percent. It took effect in September of last year.
Now, Google is doing the same. Similar to Apple’s approach, an Android developer selling a subscription service will be eligible for the cut so long as the customer in question has been subscribed for more than a year. The company plans to put it into effect starting January 2018.
Google is clearly trying to stay competitive with Apple. By offering a reduction in its fees, the company ensures that subscription services, like Spotify, don’t try to bypass the Play Store in an effort to avoid paying the fee. It also encourages software makers to work harder to keep users subscribed for longer, because the free reduction won’t take effect until 12 months in.