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Google Play Lowers App Subscription Fee to 15 Percent, Matches Apple's Offering

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Google Play Lowers App Subscription Fee to 15 Percent, Matches Apple's Offering
Highlights
  • Google is lowering its cut on mobile subscription processed on Play store
  • The announcement is likely going to make app developers happy
  • Last year, Apple made a similar announcement

Google said this week it is lowering the amount of money it charges app developers for mobile subscriptions processed through the Google Play app store from 30 percent to 15 percent in a move to better compete with Apple's offering for iOS developers.

Developers will be able to make use of the price revision, which goes into effect beginning January 2018, only among their customers who have subscribed to their app for a year. So, for the first year, Google will still take a 30 percent cut on the mobile subscription transactions, the company clarified. This is the same policy Apple employs for auto-renewed paid apps.

The announcement comes more than a year after Apple said it was lowering the subscription cost processed through App Store from 30 percent to 15 percent after this first year. That announcement was met with much excitement from app developers.

Google will hope that the move further incentivises Android app developers to continue making apps for the Google's platform. Even as Google has long maintained its own app ecosystem, developers have typically been more inclined to Apple's platform, as iOS apps tend to generate more money.

On the sidelines, Google also announced that it is shortening the minimum length of the free trial period to three days, giving developers more leeway on how they market their products. Developers, additionally, will now be notified when a user cancels the subscription.

Google is also introducing a "Try It Now" button on Google Play to allow users to test the "Instant Apps" without having to download them. Apps that offer this functionality will be labelled as Instant App-ready in the app store.

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