Match Group and Bumble Stock Jumps After Google Lowers Commission Rate For Subscription Apps

22nd October 2021 Dominic Whitlock

Google announced yesterday that all subscription-based apps will now only pay a commission rate of 15%.

The changes were made after the technology giant faces growing pressure from antitrust regulators around the world. App developers have spent the past year campaigning for both Google and Apple to implement changes on their respective stores.

Google previously took a 30% commission rate for the first year before dropping the fees to 15%. However, the lower rate will now be implemented from the very first day.

E-books and music streaming services will benefit from an even lower commission rate of 10%, while gaming apps won’t receive a discount on their in-app purchases.

Match Group is one of the leading activists working alongside Fortnite-creator Epic Games. This latest update is a positive step in the right direction, but developers want to be allowed to use alternate methods to receive payments.

Regulators in both South Korea and The Netherlands have instructed Apple and Google to make changes to their terms of service and reduce the stranglehold they have over the app development space.

Both Match Group and Bumble saw their share prices pop by 12% and 15% respectively yesterday. Investors were obviously encouraged by the significant positive impact the news will have on their revenue.

A Google spokesperson told The Verge: “Google has a long history of evolving Android and Play’s model based on feedback from our developer ecosystem on what they need to be successful on Play.”