Google allows app developers in EU to use rival payment systems, cuts fees
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Google on Tuesday said it will reduce the Play Store service fee for non-gaming app developers in the European Union by 3 per cent ? 12 per cent from the current 15 per cent -- if they use rival payment systems.
Google said it will not remove, or reject updates of, non-gaming apps from participating developers for offering alternative billing systems for the European users.
"We expect to expand billing alternatives to developers of gaming apps for their users in the European Economic Area (EEA), in advance of the Digital Markets Act's (DMA) effective date," said Estelle Werth, Director, EU Government Affairs and Public Policy, Google.
This means that developers of non-gaming apps can offer their users in Europe an alternative to Google Play's billing system when they are paying for digital content and services.
The Digital Markets Act will require Google Play and other industry players to adjust their current operating model for users in the EEA.
Google said that since 99 per cent of developers currently qualify for a service fee of 15 per cent or less, "those developers would pay a service fee of 12 per cent or lower based on transactions through alternative billing for EEA users acquired through the Play platform".
Google Play's billing system will continue to be required for apps and games distributed via Play to users outside the EEA, and for games distributed to users within the EEA.
"Although the DMA does not take effect for some time, we are launching this programme now to allow us to work closely with our developer partners and ensure our compliance plans serve the needs of our shared users and the broader ecosystem, Google said.
In India, Google has decided to defer the implementation of its app payment policies to October for developers.
Both Google and Apple charge either 15 or 30 per cent commission on purchase of paid apps and in-app purchases (IAPs) in the country.
"We remain committed to recognising and solving for the unique needs of the ecosystem in India," Google had maintained.
Today, around 3 per cent of developers are subject to a service fee and 99 per cent of developers qualify for a service fee of 15 per cent or less.
