Google to Allow Alternative Payment Systems in Google Play

Google has announced that non-gaming app developers on its Google Play app shop who switch to other companies' payment systems will have their fees reduced from 15% to 12%. By doing so, the company aims to comply with new EU technology rules.

The company said that the reduced fee will only affect European consumers and that similar practices will be extended to gaming apps in the future.

Estelle Werth, Google's director for EU government affairs and public policy, said:

Since 99% of developers currently qualify for a service fee of 15% or less, those developers would pay a service fee of 12% or lower based on transactions through alternative billing for EEA users acquired through the Play platform.

Google decided to make a concession to the EU after the European Parliament passed the Digital Markets Act (DMA) in July, which requires companies such as Google, Apple, Meta and Amazon to allow developers to use alternative payment methods in apps, otherwise they face fines of up to 10% of their global turnover.

In the last decade, Google has been fined a total of around €8 billion in EU antitrust fines for anti-competitive practices related to its price comparison service, Android mobile operating system and advertising services.