Google announced on Thursday that it will reduce the cost of its app store because the technology giant is under pressure to relax control of the online market.
Sameer Samat, vice president of product management, said in a blog post that starting in January, Google Play subscription commissions will be reduced by half to 15%. Currently, Google receives a 30% discount for the first year of subscription, and then a 15% discount on renewal.
Google said that the new fee structure means that companies do not have to wait for subscribers to renew — they may or may not — to benefit from lower commissions. The operating systems of Google and Apple run on 99% of smartphones worldwide, and they argue that their respective app store commissions are fair compensation for providing a secure platform. But developers are angry at the loss of profits, and regulators are critical of tech giants’ control of their online markets.
Apple has cut commissions from 30% to 15% in recent months. For example, the annual revenue generated by apps is less than US$1 million (approximately 7.4 million rupees). In September, a U.S. judge ordered Apple to loosen control of its App Store payment system.
This blow to the global technology giant was triggered by itsanti-trust battle with Fortnite maker Epic games initiated the case to break Apple’s control of the App Store, accusing iPhone manufacturers of acting like a monopoly. Both Apple and Epic have appealed the decision.
News Source : Gadgets 360
