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.

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