Google cuts app store fees

Google cuts app store fees

The change by Google would cut the commission on recurring subscriptions through the Google Play store from 30% to 15%, a move that could significantly reduce costs for any company that makes a lot of money through in-app purchases.

Shares of app developers like Bumble, Duolingo and Roblox rose on Thursday after Google said it would reduce the company’s cut from subscriptions on its Android app store.

Google also said it would introduce a new program for apps that have large content costs, like streaming music or TV shows, which could lower Google’s take even farther to 10%.

Google and Apple have both been slashing fees amid pressure from lawmakers and regulators over the power that the dominant app stores hold within their developer ecosystems. Google went even further than Apple, which has cut its take from 30% to 15% in many cases, including for apps making less than $1 million per year, news apps, and other services.

“This is great news!” tweeted Duolingo CEO Luis Von Ahn, after Google’s announcement. “This reduction in subscription fees will help Duolingo accelerate our mission of providing universally available. education.”

Duolingo, whose app helps customers learn foreign languages, rose 13% at Thursday’s close. Dating app Bumble gained more than 7%.

Gaming stocks also rallied as games make up the majority of Google Play store revenue. Roblox rose about 6% and mobile game developer Zynga initially spiked on the news before settling down to a gain of about 1%. AppLovin, which owns several game studios, rose over 3%.

Streaming services with app-based businesses rose as well on optimism that platform costs may be permanently reduced. Netflix rose about 4%. Spotify gained less than 2%.

Google collected $11.6 billion in in-app purchases around the world in 2020 on $38.8 billion in spending on the Google Play store, according to an estimate provided by analytics firm Sensor Tower. Google’s move raised the possibility that Apple could decide to match its rival as the two app stores often have similar policies and take rates. Apple’s store is generally considered more lucrative for developers than Google Play and most companies distribute software through both. Of the two, Apple has faced more intense pressure from regulators over app store fees.

The News Highlights

  • Google cuts app store fees
  • Check the latest update on Gaming news
Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
International Personal Finance Q3 Profit Receipts
International Personal Finance Q3 Profit Receipts
Write to Joe Hoppe at joseph.hoppe@wsj.com Shares at 0926 GMT were down 6.0 pence, or 4.7%, at 121.4 pence. The company said its strategy for rebuilding is ...
Samsung's web browser now includes one of the most requested features
Samsung’s web browser now includes one of the most requested features
Move URL bar menu. Credits – Dan Seifer – Samsung finally brings one of the most requested features to its Internet browser. Move URL bar menu. Credits – Dan ...
New Covid-19 variant Omicron covers, travel updates from around the world
New Covid-19 variant Omicron covers, travel updates from around the world
As of November 26, “at-risk” countries include South Africa, Botswana, Zimbabwe, as well as “countries in Europe including the United Kingdom,” Brazil, ...
Starling Mars and the Mets have agreed to a four-year contract, according to MLB reports
Starling Mars and the Mets have agreed to a four-year contract, according to MLB reports
Jon Heyman of MLB Network broke the news late Friday night. The New York Mets and outfielder Starling Marte have agreed on a four-year, $78 million ...
The abortion debate will continue after the new ban comes into effect.
The abortion debate will continue after the new ban comes into effect.
Democrats, meanwhile, have proposed several bills to repeal the new restrictions. They also want to include the right to make reproductive medical decisions ...
Exclusive PS4 and PS5 Black Friday Deals • Eurogamer.net
Exclusive PS4 and PS5 Black Friday Deals • Eurogamer.net
We’re constantly updating our deals hubs as new price cuts and discounts become available, so you can save even more money this Black Friday. From the best ...
Vivo's next Android gadget is a strong tablet
Vivo’s next Android gadget is a strong tablet
Vivo Pad trademark – Vivo’s next Android device is a very powerful tablet. Vivo Pad trademark. According to the same source, Vivo’s tablet is likely to ...
Today's businesses include Microsoft, Asus, Huawei MateBooks and Chromebooks
Today’s businesses include Microsoft, Asus, Huawei MateBooks and Chromebooks
Whether you need a business laptop, a laptop for work or one to take to uni, we’re hunting down the very best Black Friday laptop deals from leading brands ...
Sony could be working on a similar PlayStation phone controller
Sony could be working on a similar PlayStation phone controller
But it’s slightly more advanced than a familiarly shaped piece of molded plastic, with the description adding the possibility of motion controls, too. The ...
Santa Clara County supervisors consider mandatory mental health treatment for people with serious illnesses |  News
Biden’s COVID measures meaningless without border security
CLICK HERE TO GET THE OPINION NEWSLETTER Among those are untold thousands of African migrants, some inevitably originating from the very countries affected by ...
Show next
We will be happy to hear your thoughts

      Leave a reply

      Compsmag - Latest News In Tech and Business
      Logo