Google Announces That European Developers Can Now Use Their Own Billing System
- App Development
- July 21, 2022
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Google announced in a blog post that non-game app developers in the European Economic Area (EEA) will now have the opportunity to offer alternative payment systems.
The Alphabet Inc-owned company also made clear in the blog post its intention to comply with the Digital Markets Act (or DMA), an EU regulation from the European Commission that aims to ensure a higher degree of competition in European digital markets.
The DMA Act, legislation intended to regulate big tech that was passed by the European Parliament earlier this month, comes into force in the spring of 2023, but Google is moving faster than the tide to ensure its plans “cover the needs” of the users.
The DMA requires “gatekeepers,” or companies with a market capitalization of €74 billion or more, to comply with a set of rules that would encourage competition between digital platforms. The legislation imposes fines on companies that do not comply with up to 10 percent of their global income or 20 percent in the case of repeat offenses.
Google Announces That European Developers
Google is charging Android developers who choose to use an alternative payment processor a service fee per transaction on the first $1 million made in a year, and the company says it will reduce that fee by 3 percent, indicating which will now take 12 percent. reduction or less of each transaction.
Google also announced that if developers earn more than $1 million in a year, it will charge them a 27 percent transaction fee, 3 percent less than the standard 30 percent.
In justifying this fee on the support page, Google noted that it “was never just a payment processing fee” and instead “reflects the value that Android and Play provide.”
The new policy stops Google from removing apps that use alternative payment systems, as long as the payment systems meet Google’s requirements.
What that means is that it will serve users in the EEA (European countries in and out of the EU), while preventing non-EEA users from accessing the payment system. It also states that developers must provide customer support for the billing service of their choice.
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