Google halved Play Store fees for subscription-based apps. kick in january

owned by alphabet Google said Thursday it is reducing the fee that subscription-based apps need to pay play store Up 15 percent from day one, after criticism from companies like Spotify about its fee structure.

Currently, developers are required to pay 30 per cent subscription fee in the first year and 15 per cent thereafter. “We’ve heard that customer churn makes it challenging for subscription businesses to profit from that low rate. So, we are making things simple for sure,” Google said in a blog post.

The new structure will start from January next year and will likely encourage developers to switch from one-time payment mode to subscription. E-book companies and on-demand music streaming services, which use most of their sales to pay for the cost of content, will now be eligible for a service fee of at least 10 percent.

Big firms like Google have come under attack Microsoft corp, Spotify Technology SA, as well as startups and smaller companies that charge fees, deprive consumers of options and drive up app prices.