Google to cut subscription service fees for all Play Store creators

Google has announced it will take a smaller cut from developers’ Play Store subscription fees starting next year.

As outlined in a new blog post, Google will demand 15% of developers’ subscription fees on the Play Store “from day one.” Currently, the company takes a 15% cut from developers only if consumers hold on to a subscription for an entire year. If a consumer unsubscribes before this period, this fee for developers jumps to 30%. Understandably, that’s a pretty tough target for budding developers. Google now acknowledges this, citing “customer churn” as a significant problem. But it believes its new guidelines, which will come into effect on January 1, 2022, should ease the pressure on budding developers.

Google also announced commission cuts for Play Media Experience program members. For on-demand music streaming services and ebook publishers can get service fees “as low as 10%.” Per Google, the new rate should better support creators on the platform.

Google’s latest service fees overhaul comes just months after it announced changes to its in-app purchase demands. In March, it followed Apple by dropping its Play Store services cut to 15% for the first $1 million of a developer’s revenue. While the latest move may appear as a token of goodwill to creators, the company is also warding off legal pressure. In July, a group of 36 US states filed an antitrust suit against Google for allegedly abusing the Play Store’s dominance. Google’s also fighting to overturn its $5 billion fine handed down by the EU for abusing Android’s market position.