Google Matches Apple by Decreasing Play Store Fee for Subscriptions to Android Apps


Google announced that it would follow the lead of Apple in reducing the amount of money that app developers must pay for mobile subscriptions that are processed through the Play Store. In June 2016, Apple announced a new policy for its App Store in order to encourage developers to offer subscriptions as in-app purchases within the iOS. That involved decreasing the standard App Store transaction fee from 30% to 15%. The said policy took effect in September 2016.

Currently, Google is doing the same. Similar to the approach of Apple, an Android developer that is selling a subscription service will be entitled for the cut as long as the customer in question has been subscribed for over a year. The company aims to put it into effect starting in January 2018.

Clearly, Google is attempting to continue to be competitive with Apple. By offering a markdown in its fees, the company ensures that subscription services such as Spotify, do not attempt to bypass the Play Store in an effort to dodge paying for the fee. It also boosts software makers to work harder to keep their users subscribed for longer since the free reduction would not take effect until 12 months in.