According to SlashGear, Google has a plan in place to halve its commission on subscription-based businesses in the Play Store. The American company, following in Apple's footsteps, had previously reduced its commission rate for the first $ 1 million in annual program owner revenue from 30 percent to 15 percent, and will now apply this reduction to developers who generate revenue through in-app subscriptions. . This plan is a continuation of the discussions that have taken place in recent months about the costs received by the two main platforms, Android and iOS, from the developers to attend the two stores App Store and Google Play.
Google's plan will be implemented from January next year and specifically Will affect in-app digital subscriptions; The part, according to the official blog of the American company, is one of the in-app payment models that has experienced the fastest growth. "Digital subscription rights have become one of the fastest growing models for developers," said Sameer Samat, Google's vice president of product management. "However, we are aware of the specific challenges of the right-of-way business in attracting and retaining customers [and] working with our partners in areas such as dating, fitness, training and other areas to understand the subtle differences in their business." "But according to rumors, the drop in customers is challenging subscription businesses and they can not benefit from this rate reduction," he said, referring to the reduction in service costs after 12 months of continuous subscriptions from 30 to 15 percent. Therefore, we facilitate the work to ensure their ability [to reduce the cost of services]. "
At the same time, in the process of setting new service charges for media apps, Google needs to look at a wider range of platforms, including TVs, cars, smartwatches, tablets, and more. Which in itself requires more developers to invest in applications. In addition, Google seeks to support artists, musicians, writers, and other content producers by reducing the cost of in-app services, which they can now get more money from developers by lowering Google's commission rate.
But from a broad perspective, this decision Google is taking the lead in a long-running battle between app developers and two major US tech companies that is likely to take legal action similar to that of Apple and Epic Games. At the time, Epic Games, the maker of the popular Fortnite mobile game, introduced direct payment methods for iPhones and iPads and tried to somehow circumvent the AppStore's 30% commission. This violated the developer's contract with Apple and led to the removal of the game from the App Store. Thus, a lawsuit was filed between the famous game maker and the American giant over the high commission rate, and this legal dispute continues.
Google's commission cut comes as lawmakers around the world look for clues to the tech giants' abuse of market power and dominance of app stores against developers. South Korea, for example, recently passed a law against Google that limits the payment of in-app commissions.
Google seems to have taken a clever move to thwart the laws and prevent the passage of newer regulations by reducing the commission fees it received and trying to attract the attention of developers. Following the announcement, some developers, such as Bumble and Duolingo, praised Google in a statement.
Although Google has reduced its commissions, it still insists that developers will have to pay developers to continue investing in Android, the Play Store, the security structure, the application distribution system, and tools for developing their applications. Is. In addition, the American technology giant has promised that at the Android Developer Summit, which will be held on October 27 and 28 (November 5 and 6), more information about future updates of tools, APIs and other technologies. Will share with its audience.