Shares of app developers like Bumble, Duolingo and Roblox rose on Thursday after Google said it would reduce the company’s cut from subscriptions on its Android app store.
The change by Google would cut the commission on recurring subscriptions through the Google Play store from 30% to 15%, a move that could significantly reduce costs for any company that makes a lot of money through in-app purchases.
Gaming stocks also rallied as games make up the majority of Google Play store revenue. Roblox rose about 6% and mobile game developer Zynga initially spiked on the news before settling down to a gain of about 1%. AppLovin, which owns several game studios, rose over 3%.
Google collected $11.6 billion in in-app purchases around the world in 2020 on $38.8 billion in spending on the Google Play store, according to an estimate provided by analytics firm Sensor Tower.
Google’s move raised the possibility that Apple could decide to match its rival as the two app stores often have similar policies and take rates.