Google lets app developers use competing payment systems to cut fees

Google lets app developers use competing payment systems to cut fees

Alphabet unit Google has announced that it will reduce fees from 15% to 12% for developers of non-gaming apps on its Google Play app store that switch to competing payment systems to comply with the news. EU technology rules, from Tuesday.

The world's most popular internet search engine said the fee reduction would only apply to European consumers, while the freedom to use a different payment system will eventually be extended to gaming apps as well.

The move underscores a shift in Google's strategy from last year, where it now prefers to bow to regulatory and antitrust pressures with concession offers rather than engaging in protracted and entertaining battles.

Known as the Digital Markets Act (DMA), EU rules that come into force next year will force tech giants to allow app developers to use competing payment platforms for device sales. applications, under penalty of fines of up to 10% of their worldwide income.

Apple and Google are the most affected by this requirement. "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)," said Estelle Werth, Director of Public Affairs and Government of the Google EU. a blog post about her.

Sesame Place apologizes after "Rosita" artist was called a racist"This means that non-game app developers can offer their users in the EEA an alternative to the Google Play billing system when they pay for digital content and services," she said.

The EEA comprises the 27 countries of the EU, Norway, Iceland and Liechtenstein.

"When a consumer uses an alternative billing system, the service fee paid by the developer is reduced by 3%," Werth said.

"Since 99% of developers are currently entitled to a service fee of 15% or less, those developers would pay a service fee of 12% or less based on EEA user alternative billing transactions obtained through the Play platform. ".

Critics say the fees charged by Apple and Google on their mobile app stores are unnecessarily high, costing developers billions of dollars annually, underscoring the two companies' monopoly power. Over the past decade, Google has been hit with over € 8 billion in EU antitrust sanctions for anti-competitive practices related to its price comparison service, Android mobile operating system and advertising service.

Related news
Americans feel slightly better about the economy, but inflation is still biting
Americans feel slightly better about the economy, but inflation is still biting
Americans are feeling slightly better about the economy, but painfully high inflation is still keeping consumer confidence near an all-time low, according to preliminary research data released Friday by the University of Michigan.
Twitter burned bankers see silver lining in Musk startups
Twitter burned bankers see silver lining in Musk startups
Twitter burned bankers see silver lining in Musk startupsJuly 14 (Reuters) - Major Wall Street investment banks that will lose lucrative fees from Elon Musk abandoning $ 44 billion acquisition of Twitter Inc hope startups backed by the richest person in the world can remedy the lost cause.
Zillow's home-buying experience has fallen apart, but investors think it could work in Europe
Zillow's home-buying experience has fallen apart, but investors think it could work in Europe
Venture capitalists are betting that a new breed of startups can disrupt the slow (and expensive) process of buying and selling real estate in Europe. It comes just months after US real estate site Zillow shut down its own algorithm-based house flipping service after posting losses of nearly $880 million.
3 dead, 2 injured in an Indiana shopping mall shooting; Armed man shot to death by an armed passer-by
3 dead, 2 injured in an Indiana shopping mall shooting; Armed man shot to death by an armed passer-by
Greenwood, Indiana - Four people, including the gunman, were killed and two more injured after a man opened fire at an Indiana mall Sunday night.
House prices rise again as the housing market faces a "new reality": recession could cause big drops in these big cities
House prices rise again as the housing market faces a "new reality": recession could cause big drops in these big cities
The good news for buyers is that there was a slight slowdown in house prices in May as higher interest rates continued to hold back demand in the booming housing market, according to industry data released Tuesday, and Experts say there is plenty of room for a downward trend - particularly in many residential pandemic hotspots.