Google shaves Play Store fees following pressure from lawmakers

Google is reducing its service fees in its Google Play app store, and the company made the announcement on Thursday, Oct. 21. The tech headquartered in Mountain View, California, made a move after facing criticisms and pressure from the regulators and other lawmakers.

It was reported that Apple Inc. that was also being bashed for the high fees on its App Store, already slashed its fees before Google did. Both firms were also previously summoned to the Senate to explain more about the issue, and regulators advised them to make their app stores more accessible to developers by revising their policies related to fees.

According to CNBC, Google decided to cut its Google Play Store's service fee for subscriptions by half. This means that from 30% it will be dropped to just 15% from day one.

Under the current scheme, developers are required to pay a 30% cut on subscriptions for the first 12 months before the commission is dropped to 15%. The company shared that 99% of developers who are using its app store are likely to qualify for the reduced service fee. What's more, Google is also launching a new scheme that will allow music streaming services, e-books, and other apps that pay for content to enjoy access fees of as low as 10%.

"The creativity and innovation from developers around the world spurred amazing new app experiences we could have never imagined when we first introduced Android. As the ecosystem evolved, a wider range of business models emerged to support these different types of apps," Google's vice president of product management, Sameer Samat, said in a blog post.

He added, "We've made important changes along the way, including moving beyond a 'one size fits all' service fee model to ensure all types of businesses can be successful. Instead of a single service fee, we now have multiple programs designed to support and encourage our diverse app ecosystem."

Finally, Reuters reported that the new fee payment scheme for developers and users of Google's Play Store will kick in from January 2022. The update is expected to encourage developers to shift from a one-time payment option to subscriptions.