Google cuts App Store fees and increases app developer share

Texas News Today

App developers such as Bumble, Duolingo and Roblox gained a share on Thursday when Google announced it would be waiving deductions from subscriptions on the Android App Store.

The change made by Google will reduce the fee for regular subscription on the Google Play Store from 30% to 15%. This can significantly reduce the cost of companies that make a lot of money with in-app purchases.

Google also announced that it would introduce new programs for apps with high content costs, such as streaming music and TV shows.

Both Google and Apple are cutting rates under pressure from lawmakers and regulators within the major App Store developer ecosystem. Google, even more advanced than Apple, often reduces its burden from 30% to 15%, including apps, news apps, and other services that cost less than $1 million a year.

“This is good news!” Duolingo CEO Louis von Ahn tweeted after Google’s announcement. “This reduction in membership fees will help Duolingo accelerate our mission to provide education available around the world.”

Duolingo, which provides apps to help customers learn foreign languages, rose 11% as of Thursday afternoon. Dating app Bumble has grown by more than 8 percent.

Since games account for the majority of Google Play Store’s revenue, game stock also rebounded. Roblox grew about 6%, and mobile game developer Zygna settled on growth of about 1% after the first surge in the news. AppLovin, which owns multiple game studios, grew more than 2%.

Streaming services have also grown in app-based businesses with optimism that platform costs can be reduced permanently. Netflix is ​​up about 4%. Spotify’s growth rate was less than 2%.

Google raised $11.6 billion in in-app purchases worldwide in 2020 by spending $38.8 billion on the Google Play Store, according to analytics firm Sensor Tower estimates.

Google’s move has raised the possibility that Apple will decide to match its rivals, as the two app stores often have similar policies and charge rates. The Apple Store is generally considered a developer advantage over Google Play, and most companies distribute software through both. Of the two, Apple is facing more pressure from regulators over App Store pricing.

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