Previously Google allowed a reduced rate of 15 percent from the second year of a subscription. Going forward the lower rate will apply from day one of the subscription on the Play Store.
Google said the new fees recognise better the economic of the current market, especially for media services where content is a high part of the costs. Earlier this year it started offering the 15 percent rate for content services to encourage developers to make apps also for other platforms, such as TVs and cars. Known as the Play Media Experience programme, this will now come with an even lower rate of 10 percent, if developers agree to certain integration conditions with Google.
When the Play Store first started, the business model was more uncertain, and the commission was used to build out the services, Google said. Furthermore, Google noted that it did not charge licensing fees for the Android OS, making the Play Store a big source of its return on the mobile ecosystem.
Google normally charges a 30 percent commission on all apps and subscriptions on the Play store. In March it introduced the reduced rate of 15 percent on the first USD 1 million in revenues earned in a year.
The changes following growing pressure from developers and regulators for Google and Apple to lighten their grip on app distribution. Apple also agreed changes to the App Store this year, following a lawsuit and regulatory case in Japan.
