Application developers have previously ceded 30 percent of the subscription price to Google; after twelve months, the fee fell to 15 percent. It should stay at this value from the beginning of January 1, 2021.
After criticism from software developers and politicians, Google is lowering the fee for subscriptions that are concluded via the group’s app platform.
Previously, app developers had to cede 30 percent of the subscription price to Google, after a year the fee fell to 15 percent. Now it will be 15 percent from the start, as Google announced.
You have heard from developers that it is difficult for them to arrive in the 15 percent range, because some customers canceled their subscriptions beforehand, Google justified the move. The change should take effect on January 1st next year. In Apple’s App Store, subscriptions are currently also initially 30 percent and after one year 15 percent.
Google is behind the Android smartphone operating system, which has a market share of over 80 percent. Apple fills practically all of the rest of the market with its iPhones. On Android smartphones, apps can not only be downloaded from Google’s Play Store. However, users mostly fall back on the pre-installed Google platform. Applications can only be downloaded from the in-house app store on iPhones.
In the past few years, various app developers had complained that the fees on both platforms were too high. Politicians and competition watchdogs in both Europe and the US are targeting the app store system. Large streaming services such as Netflix and Spotify, for example, do not even sell their subscriptions via Apple’s App Store, but via their own website in order to avoid having to sell them.
When selling apps or other businesses in the applications, Apple and Google have only been charging developers a fee of 15 percent since last year if their revenues are less than one million dollars.
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