According to reports, Google announced that starting Tuesday, developers of “non-game apps” in the Google Play store app can offer third-party payment options. In addition, the service fees will also change from the current 15% to 12%. The move aims at complying with new EU regulations. Google also points out that the new service fee only applies to the European market. Additionally, game app developers may also offer third-party payment options in the future. The move shows that Google has adjusted its strategy and is now more willing to make some concessions to regulators than to engage in a long and distracting confrontation with them.
Google Play Store is responding to the new Digital Markets Act
The European Union’s Digital Markets Act (DMA) will come into force next year. The Act requires tech giants to allow app developers to use rival payment platforms or face fines of up to 10% of their global turnover. Obviously, Apple and Google are most affected by the bill.
“As part of our efforts to comply with this new rule, we are announcing this new plan,” Estelle Werth, Google’s head of EU government affairs and public policy, said in a blog post. Additional payment options for EEA users. This means developers of non-gaming applications (Apps) can offer EEA users an alternative to the Google Play payment system.”
Worth also said: “When consumers use an alternative payment system, developers pay Google 3% less for their services. Currently, 99% of developers pay Google 15% or less for services. After the three-way payment scheme, developers only need to pay a service fee of 12% or less.”
In recent years, critics have accused Apple and Google of overcharging their mobile app stores. Data shows that developers collectively pay Apple and Google billions of dollars a year, underscoring the monopoly power of the two companies. Before that, Google’s price comparison service, Android operating system and advertising service had been fined more than 8 billion euros by the European Union for monopolistic behaviour.