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Google slashes Play Store commission for in-app subscriptions from January 2022

*The global technology giant plans to cut Play Store commission for in-app subscriptions to 15 percent with effect from January 1 next year

Isola Moses | ConsumerConnect

The global technology giant Google plans to cut Play Store commission for in-app subscriptions to 15 percent, effective January 1, 2022.

The Big Tech and leading search engine is under mounting pressure from developers in India, its largest market in terms of user base.

The developers have urged the company to allow other payment mechanisms for purchases by consumers, agency report stated.

Sameer Samat, Vice-President of Product Management for Google Play, wrote in blog post Thursday, October 21, 2021, that “digital subscriptions have become one of the fastest growing models for developers, but we know that subscription businesses face specific challenges in customer acquisition and retention.

“We’ve worked with our partners in dating, fitness, education and other sectors to understand the nuances of their businesses.”

Samat noted: “To help support the specific needs of developers offering subscriptions, starting on January 1, 2022, we’re decreasing the service fee for all subscriptions on Google Play from 30% to 15%, starting from day one.”

It further said that it is reducing service fee to 10 percent in the media experience programme in categories, such as e-books and on-demand music streaming services, where customers spend for subscription every month.

According to the Vice-President, Product Management for Google Play, “Ebooks and on-demand music streaming services, where content costs account for the majority of sales, will now be eligible for a service fee as low as 10%.

“The new rates recognise industry economics of media content verticals and make Google Play work better for developers and the communities of artists, musicians and authors they represent.

“You can go here for more information.”

ConsumerConnect had reported that the Indian Internet entrepreneurs have been up in arms against both Google and Apple over the in-app commission charged by the two technology giants.

The software developers contended that they do not allow other payment mechanisms that charge low to nil commissions to be used, thereby harming their business.

The Alliance of Digital India Foundation (ADIF) earlier this month filed a petition before the Competition Commission of India (CCI), seeking interim relief from Google’s new Play Store policy which goes into effect from March 2022.

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