Google Will Reduce Play Store Fees and Allow Developers to Use Rival Payment Systems: All Details

Google Will Reduce Play Store Fees and Allow Developers to Use Rival Payment Systems: All Details ...

Google's search engine has announced that it will reduce fees for non-gaming app developers on its Google Play App Store, which will now include gaming apps, to 12 percent, instead of 15 percent, as it strives to comply with new EU technology regulations. The move underscores a shift in Google's approach since last year, where it prefers to bow to regulatory and antitrust pressure with concessions rather than engage in lengthy and distracting battles.

The Digital Markets Act (DMA) of the European Union, which will take effect next year, requires tech corporations to allow app developers to make payments using competing payment platforms for app sales, or face fines of as much as 10 percent of their global turnover.

This requirement is particularly harmful to Apple and Google.

In a blogpost, Google's director for EU government affairs and public policy stated a new program to assist EEA users in obtaining billing alternatives.

When it comes to digital content and services, non-gaming apps will be able to offer a viable alternative to Google Plays' billing system, according to the author.

The Economic Area (EEA) includes the 27 EU countries, Norway, Iceland, and Liechtenstein.

Werth said that the service charge the developer pays will be reduced by 3% when a consumer uses an alternative billing system.

99 percent of developers currently qualify for a 15 percent or lower service fee, and they would pay a 12 percent or lower service charge based on transactions for EEA users purchased through the Play platform.

Apple and Google's mobile app stores charge unnecessary fees and expense developers billions of dollars a year, exposing the two companies' monopoly power.

Google has been fined more than EUR 8 billion (roughly Rs. 65,500 crore) by the EU antitrust authorities in the last decade for anti-competitive practices related to its price comparison service, Android mobile operating system, and advertising service.

Thomson Reuters 2022

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