Google to slash fee it takes from subscriptions on App Store

Alphabet Inc.’s Google is slashing the fees it takes from subscription services on its app store following pressure from developers and lawmakers. 

Beginning Jan. 1, the Google Play Store will charge third-party subscription apps a 15% commission, the company said Thursday. Previously, subscription apps were charged 30% for the first year, then 15% thereafter. Google also charged 15% for the first $1 million in revenue.

Google said it’s making the change because "customer churn makes it challenging for subscription businesses to benefit” from getting a discount in the second year. "Digital subscriptions have become one of the fastest-growing models for developers, but we know that subscription businesses face specific challenges in customer acquisition and retention,” Sameer Samat, a vice president at Google, said in a blog post.