Google to slash Play Store service fee for subscription-based apps in 2022

Google LLC will slash the service fee it collects from applications that offer subscriptions on Google Play app store to 15% from 30%, effective Jan. 1, 2022.

The Alphabet Inc. unit said the lower service fee is among the changes that the company is making to further support its app ecosystem. Google said 99% of app developers would qualify for a service fee of 15% or less, according to an Oct. 21 press release.

Google also announced that e-books and on-demand music streaming services can qualify for a service fee as low as 10%.

Earlier this year, Google reduced service fees on the Google Play app store to 15% for the first $1 million that an app developer earns every year. Apple Inc. has also cut fees in half for some apps on its App Store under its App Store Small Business Program.

Apple's move followed complaints filed by Spotify Technology SA and Epic Games Inc. over the App Store fees.