Google has reduced its fees for subscription-based in-app purchases on the PlayStore by 50%.
The new change comes at a time where the company faces increased regulatory scrutiny over its app store digital payment policies.
Key Highlights
- Google has reduced its in-app purchase commissions from 30% to 15% for subscription-based payments.
- This new change will kick in effective 1st January 2022.
- With the new change, developers will only have to pay 15% to Google from day one.
Why It Matters
- This change comes as an increasing number of developers and regulators call for more autonomy to utilize their own digital payments outside Google and Apple's app stores.
- This isn't the first time Google has reduced its commission fees for in-app purchases. Prior to this, app owners were only eligible to pay 15% (instead of 30%) in fees provided they managed to retain existing subscriptions for at least 12 consecutive months.
- Earlier yesterday, Apple made a similar announcement, allowing users to utilize their own payments instead of the default in-app purchasing system.
