Google Lowers App Store Fees: Everything you Need to Know

In a recent blog post, Google announced that they will be lowering the fees they charge developers for in-app subscriptions from 30% to 15%. This news comes as a major win for the Google app developer community after voicing their concern over high in-app service fees for years.

Google writes: “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.”

The Google Android store  — the major competitive app development platform to the Apple App Store — will reduce these fees heading into the new year to remain competitive in the space, incentivize developers to choose the Andriod platform for releasing their apps, and create a stronger ecosystem of applications. 

“The pricing change announced will allow us to better invest in our products and further empower users to confidently connect online,” Whitney Wolfe Herd, chief executive of Match rival Bumble Inc. said in a statement recent statement.
With so much changing in the space, we’ve decided to give a clear breakdown of how these fees have changed over the past few years.

A Breakdown of Fees for Google and Apple 

Although this comes as major news for the Google app developer community, it’s important to note that both Google and Apple have recently changed their in-app purchase service fees after receiving pushback from developers and regulators in the space.

To make more sense of how this fees space has changed, let’s take a look at the changes in fees. 

Changes in Google App Fee Structure 

Prior to this shift to slash the in-app purchase fee by 50%, Google’s standard practice was the charge an initial 30% fee for in-app purchases and then drop that to 15% after 12 months of a recurring subscription.

On top of this recent change, Google has gone on to state that 99% of developers would benefit from this lower service fee, which will go into effect on January 1st, 2022. Google also points out that it plans to reduce certain fees — for specific vertical apps in the Play Media Experience Program — to 10%.

Changes in Apple App Fee Structure 

Apple, which has also faced blowback from developers, as well as major regulator scrutiny over recent months, recently sliced its fee for apps that generate less than $1 million per year, news apps and certain premium video streamers that participate in an Apple program. From 30% to 15%.

In the face of mounting regulatory concern, Apple released a statement that they would allow certain clients such as Netflix and Spotify to provide their customers a unique link to create a paid account that sidesteps Apple’s in-app-purchase commission up to 30%. This update comes after a major settlement between Apple and the Japan Fair Trade Commission. 

How Does this Impact Developers Moving Forward? 

Both of these changes by Google and Apple signify that developers large and small have a voice. After years of voicing their concerns, paired with support from regulatory agencies, this massive fee reduction for in-app purchases shows that both companies are willing to ensure companies and small-shop developers are happy with distributing apps on their platform. 

If you’re interested in learning how Dogtown Media can help bring your app ideas to market  — both on the Android App Store as well as the Apple App Store — contact us. We’d love to help!