Google to Cut Subscription App Commissions to 15%

Google announced a reduction in commission fees for subscription apps from 30% to 15%, effective January 1, 2022, addressing developer concerns about customer churn impacting the benefits of previous revenue splits. This change, which applies from the first day of subscriptions, comes amidst increasing pressure on Google and Apple from lawmakers and developers to reduce restrictive practices. Industry expert Thomas Petit anticipates that Apple will follow Google's lead, suggesting this move will enhance the value of in-app purchases (IAP) by improving user experience, trust, and centralization while benefiting developers with better tax, refund, and conversion rate management. Additionally, Google is reducing service fees for categories like ebooks and on-demand music streaming services from 15% to 10%, although gaming apps will not benefit from these changes due to their reliance on one-time and consumable in-app purchases.