Google will allow developers to use alternative payments on the Play Store in Europa, decision came in response to the Digital Markets Act (DMA) signed by the EU. But this change only applies to apps and not games. Furthermore, Google will in any case require the payment of a fee for each transaction, lowering the current commission by 3%.
Google opens to alternative payments on the Play Store in Europe
The DMA calls for so-called ‘gatekeepers’, companies that profit over 74 billion euros and have a dominant role in a market, respect a series of rules to respect competition. If they don’t, they risk it fines ranging from 10 to 20% of its global annual turnover. The legislation is expected to take full effect by spring 2023.
However, Google has found a solution that in the blog ensures that it is in line with the new rules. But that won’t cut Mountain View’s revenue by much. In fact, although it intends to allow the use of alternative payment methods on the Play Store, Google will reduce the commission on purchases by 3%. For all companies that invoice up to a million dollars a year, it drops from 15 to 12%, while over it drops from 30 to 27%.
Google explains that the commission is not “It was never just a commission on payments” but instead “reflects the value provided by Android and Play”.
However, Google will no longer remove applications that use payment systems other than its own, but only if they comply with the parameters required by Google. So developers will be able to provide alternative payments in Europe, but will have to use Google’s outside the borders. In addition, they will have to provide customer support for billing.
It therefore seems that few companies will find it convenient to accept these new conditions and it remains to be assessed whether these changes are really in line with what is stated in the DMA. Also, it should be pointed out that Google stands addressing the issue also in America: has yet to close the comparison with Epic Games and the one with the Match Group from Tinderwhich allowed alternative systems to be used before the process scheduled for 2023.
We will keep you updated on the developments of this situation, which will undoubtedly cause discussion.