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In a move that could bring some respite to the Indian startup ecosystem, Google has announced that it will decrease the service fee for all subscriptions on Google Play from 30 per cent to 15 per cent, starting from January 2022.
The vast majority of developers can distribute their apps on Google Play for free (currently, 97 per cent do so at no charge). But for the developers who offered a paid app or sold in-app digital goods (currently 3 per cent of developers), the flat service fee was 30 per cent. Many Indian startup players who are dependant on Google PlayStore for reaching customers objected to this fee.
"To help support the specific needs of developers offering subscriptions, starting on January 1, 2022, we're decreasing the service fee for all subscriptions on Google Play from 30% to 15%, starting from day one," Google said in a blog post.
For developers offering subscriptions, this means that first-year subscription fees will be cut in half.
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