Has Google finally decided to compromise to avoid lengthy and costly antitrust lawsuits? It seems so. Indeed, the Mountain View firm announced the big changes on Tuesday, July 19, 2022.
As you know, developers who offer apps that show revenue of $1 million or less on the Google Play Store have to pay a commission to Google. The value of this tax, which was previously set at 30%, increased to 15% in March 2021. A decision taken by Apple a few months ago.
However, we have just learned that the amount of these fees now increases to 12% for developers Non-game apps available in Play Store. The company states that the tax deduction is only valid in Europe. Otherwise, developers can now choose competing payment systemsthis “freedom” will soon spread to mobile games as well.
Also read: Google found a way to avoid record fine, here’s how
Google reduces Play Store commission amount in Europe
As a reminder, new EU rules known as the Digital Markets Act (DMA) require GAFAMs to allow app developers to: use competing payment platforms for app sales (and in-app purchases) or fined up to 10% of their worldwide turnover.
“As part of our efforts to comply with these new rules, we are announcing a new program to support billing alternatives for users in the EEA (European Economic Area)”, Estelle Werth, director of EU government affairs and public policy at Google, official blog post.
According to the manager, developers who choose to use an alternative billing system “meet appropriate user protection requirements and fees and terms of service will continue to apply to support our investments in Android and Play.”
In fact, and when a consumer uses an on-demand payment system to purchase an app or make an in-app purchase, service fees paid by developers will be reduced by 3% (ie 12% in total). The framework also reminds you that 99% of developers currently meet the requirements to take advantage of 15% or lower service fees.
