Google has announced that it plans to reduce subscription-based applications in its Play Store for devices running its Android software, as a recent offer, to challenge whether the company has overcharged developers.
In a blog post on Thursday, Google said it would cut commissions on subscriptions for apps paid by users through its Play Store to 15 percent. Currently, Google is reducing the subscription by 30 percent for the first year and then by 15 percent from the second year. Google will remove the two-step process, which starts in January, and use the lowest fee from the beginning.
Google has also said that some ebooks and streaming music services will be eligible for less than 10 percent off. It is not immediately clear which services or books are eligible and how the exact percentage is set.
In March, a company cut the first $ 1 million it earned through the Google Play Store from 30 percent to 15 percent to ease the financial burden on small developers. This followed a similar commission cut from Apple.
The latest Play Store changes are reflected in the fees charged by Google and Apple developers to push their software through their Store. When Apple launched the App Store in 2008, the company set its commission at 30 percent and Google soon followed a similar tariff system.
But as companies build businesses based on applications running on smartphones and tablet computers, they began to question whether the growing number of developers is more than 30 percent and a by-product of the lack of competition in the market for app stores.
Earlier this year, 36 states and the District of Columbia sued Google alleging that its App Store had abused its market power. Google is also fighting a lawsuit filed by Epic Games, the creator of the popular video game Fortnight, whose search engine removed the game maker’s app in order to avoid paying for it. Last week, Google filed a lawsuit against Epic.