By Tripp Mickle

Alphabet Inc.'s Google is reducing the commission it charges developers that sell digital goods and services through its Play store, a move that comes amid increased regulatory scrutiny of the power the tech giants wield through their app marketplaces.

The company behind the world's largest operating system, Android, said Tuesday that it would reduce service fee it collects to 15% from 30% on the first $1 million developers earn from its app store. The reduction is a slight departure from a decision Apple Inc. announced late last year to r educe its rate to 15% for software makers who generate less than $1 million in annual sales.

Google and Apple have built multibillion-dollar digital empires over the past decade by becoming the primary gatekeepers for the apps that are downloaded to smartphones and other mobile devices world-wide. Their position of power has sparked criticism from developers large and small over the amount of money that tech companies are able to siphon from them. Those complaints have triggered lawsuits as well as regulatory probes in multiple countries.

(More to Come)

Tim Higgins and Sarah E. Needleman contributed to this article.

Write to Tripp Mickle at Tripp.Mickle@wsj.com

(END) Dow Jones Newswires

March 16, 2021 11:49 ET (15:49 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
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