50% reduction of Google’s commission fee in the Play Store for subscription-based applications from the beginning of 2022

50% reduction of Google’s commission fee in the Play Store for subscription-based applications from the beginning of 2022

50% reduction of Google’s commission fee in the Play Store for subscription-based applications from the beginning of 2022

News unit EMGblog.com: based on SlashGear reports that Google is working on a plan that will cut the commission it receives from subscription-based businesses on the Play Store in half. Following Apple, the American company has already reduced its commission rate from 30% to 15% for the first million dollars of annual income of the program owner had reduced And now it will apply the reduction to creators who monetize through in-app subscriptions. This plan is a continuation of the discussions that have been held in recent months about the fees received from the developers of the two main platforms, Android and iOS, for appearing in the App Store and Google Play.

Plan Google is set to come into effect in January next year and will specifically affect in-app digital subscriptions. ; The part that corresponds to Announcing the official blog of the American company, it is one of the fastest growing in-app payment models.

Sameer Samat, Vice President of Product Management Google in this regard “Digital subscriptions have become one of the fastest growing models for developers,” he says. “However, we are aware of the specific challenges of the subscription business in customer acquisition and retention [and] we work with our partners in areas such as dating, fitness, education and other sectors to understand the nuances of their business.” Referring to the service fee reduction from 30% to 15% after 12 months of continuous subscription, he added, “But according to what we heard, the loss of customers challenges subscription businesses and they cannot benefit from this rate reduction.” Therefore, we facilitate things to ensure their ability [to reduce the cost of services].”

Google is currently implementing a procedure within the framework of which, after 12 consecutive months of subscription, the fee received will be reduced from 30 to 15 percent. Now this procedure will be changed and the subscription fee will be calculated at 15% from the beginning. In addition, streaming music and e-book services will only pay a 10% commission. The change is actually part of the so-called Play Media Experience initiative, which includes apps like e-books and music streaming services or video-on-demand, where content purchase costs make up the majority of sales. In addition, some businesses that are considered Google’s competitors, including Spotify, which is a serious competitor to YouTube Music, are included in this group. It should be mentioned that Play Media Experience was launched earlier this year to encourage developers of books, video and audio products to work on Android, and the ceiling for its subscription fee has been set at 15% for the same purpose.

At the same time, in the process of setting new service fees for media apps, Google must consider a wider set of platforms, including TV, car, smartwatch, tablet and more. Which requires developers to invest more in applications. In addition, Google is looking to support artists, musicians, writers and other content producers by reducing service fees in apps, who can now receive more money from developers by lowering Google’s commission rate.

But from a larger perspective, Google’s decision is the first step in a long-running battle between app developers and two major US tech companies, likely to avoid legal consequences similar to The legal case between Apple and Epic Games has been completed. At that time, Epic Games, the developer of the famous mobile game Fortnite, included a direct payment method for iPhone and iPad in its game and tried to somehow bypass the 30% App Store commission. This violated the developer’s contract with Apple and led to the removal of the game from the App Store. In this way, a case was opened between the famous game maker and the American giant regarding the high rate of commission received, and this legal dispute is still ongoing.

The reduction in commission rates by Google comes as lawmakers around the world They are looking for signs that tech giants are abusing their market power and dominating app stores against developers. For example, South Korea recently passed a law against Google that limits in-app commission payments.

It seems that in a smart move to neutralize the approved laws and prevent the adoption of new regulations against it, Google has preempted by reducing the commission received and tried to attract the opinion of the developers. As after announcing this news, some developers such as Bumble and Duolingo have praised Google’s action in statements.

Of course, although Google has reduced its commissions, it still emphasizes that in order to continue investing in Android, the Play Store, the security structure, the application distribution system, and the tools related to the development of its applications, it has to charge developers. Is. In addition, the American technology giant has promised to provide more information about the future update of tools, APIs and other technologies at the Android Developer Summit, which will be held on October 27 and 28 (November 5 and 6). He will share with the audience.

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