Google and Apple have for years faced several accusations of monopolistic behavior from the European Union. Now that the Digital Markets Act (DMA) is adopted, Google will finally implement some changes…
The DMA is the new legislation on digital markets in the European Union. It aims to restore a fair balance of power in the European digital market and to tackle monopolistic companies like Google and Apple.
Google in arm wrestling with DMA
Since 2010, Google has been the target of several complaints from the European Union regarding competition in the digital market. The complaints evolved into lawsuits for which Google was ordered to pay around 8 billion euros in total. In 2020, other practices of the web giant, in particular concerning the takeover of Fitbit, were the subject of EU investigations. Now it’s the Google Play Store billing system that’s at fault.
Until now, Google did not allow apps from the Play Store to use payment methods other than Google Play. But the giant is preparing to make concessions before the entry into force of the DMA and now, developers who target users from the European Economic Area (EEA) will be able to offer other payment methods outside of Google Play. However, this opportunity will not be free.
Concessions subject to conditions
App developers (excluding games) will be able to offer EEA users alternative means of payment provided they pay a 12% fee on their first revenue up to $1 million, and only the first year. In subsequent years, this fee will be 15%. Developers who generate higher revenues (over $1 million per year) will have to pay a higher percentage, but only 1% of them are affected.
Also, users outside the EEA will still be forced to use Google Play’s payment system. Gaming applications will also always be subject to the same constraint, at least until DMA comes into force. However, the latter should eventually be lifted.
Google has also warned that new payment systems will have to comply with user protection regulations.
Source : XDA Developers
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