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Google slashes Play Store commissions for apps in certain categories

While the move is welcome, Google has offered no relief to gaming apps which contribute to the bulk of Play Store revenues.

Amidst mounting regulatory pressure, Google announced changes to its Play Store policy that reduces commissions for certain categories of apps: Commissions on subscriptions reduced to 15 percent: Apps that offer subscriptions will only have to pay a 15 percent commission from January 2022. Currently, Google charges 30 percent for the first year of a recurring subscription and then reduces it to 15 percent for subsequent years. "For developers offering subscriptions, this means that first-year subscription fees will be cut in half," Google said. The company explained that this change was made "after learning from and listening to developers across many industries and regions, including developers like Anghami, AWA, Bumble, Calm, Duolingo, KADOKAWA, KKBOX, PicsArt." CEOs of Bumble and Duolingo both welcomed the reduction in fees saying it will allow them to better invest in growing their services. Commissions on ebook and music streaming services reduced to 10 percent for eligible apps: Earlier this year, Google launched the Play Media Experience program that reduced commissions to 15 percent for eligible video and music streaming services and ebooks. Google is now making ebooks and music streaming services eligible for a service fee as low as 10 percent, the company said. "The new rates recognize industry economics of media content verticals and make Google Play work better for developers and the communities of artists, musicians and authors they represent," the company stated. However, to avail this lower rate, apps will have to meet certain eligibility standards such as enabling integrating with WearOS and Google Cast platforms. This is the second major…

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