Companies like Apple and Google charge developers a fee for selling apps, in-app purchases, and subscriptions made through their app stores. For a long time, developers didn’t really have a choice, but in recent years, more and more developers have started speaking up and complaining about the cuts that these companies take from them.
This is usually around 30%, but Google recently announced some changes to the fees they’ll be taking from subscriptions, where the company will essentially be halving it. It will now just be a 15% cut. Google says that previously offered developers a 15% cut, but that’s only if a user were to have a recurring subscription of 12 months. Not ideal.
Google says, “But we’ve heard that customer churn makes it challenging for subscription businesses to benefit from that reduced rate. So, we’re simplifying things to ensure they can. To help support the specific needs of developers offering subscriptions, starting on January 1, 2022, we’re decreasing the service fee for all subscriptions on Google Play from 30% to 15%, starting from day one.”
Of course, it is likely not completely altruistic of them. While it is great for developers who want to use the Play Store, it also helps Google in the eyes of regulators where it might prove that Google is willing to make concessions and could help them avoid further scrutiny and lawsuits, but either way, in the end, it’s a good thing for developers.
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