Google To Cut Fees For App Developers, Allow Them To Use Rival Payment Systems

Google will reduce fees for app developers and allow them to use alternative payment systems
Alphabet’s Google said it will cut fees to 12% from Tuesday, up to 15%, for developers of non-gaming apps on its Google Play App Store who switch to a rival payment system as it complies with new EU technical rules.
BRUSSELS: Alphabet’s Google unit said it will cut fees to 12% from Tuesday, up to 15%, for developers of non-gaming apps on the Google Play App Store who switch to rival systems. pay because it works in accordance with the new EU technical rules.

The world’s most popular internet search engine said the fee reduction would only affect consumers in Europe, while the freedom to use a different payment system would eventually extend to gaming apps.
The move underscores a change in Google’s strategy since last year when it favored bending regulatory and antitrust pressure with concession offers rather than launching long and destructive battles on the ground.
This requirement applies most to Apple and Google. “As part of our efforts to comply with these new rules, we’ve announced a new program to support billing alternatives for EEA (European Economic Area) users,” Estelle Werth, Google’s director of EU government and public relations, said in a blog post. post.

“This means that developers of non-game applications can offer their users in the EEA an alternative to Google Play’s billing system when paying for digital content and services,” he said.

The EEA includes 27 EU countries, Norway, Iceland, and Liechtenstein.
Critics say the fees Apple and Google charge for their mobile app stores are unnecessarily high and cost developers billions of dollars a year, underscoring the monopoly power of the two companies.

Google has been hit with more than 8 billion euros in antitrust fines from the EU over the past few decades for anti-competitive practices related to its price comparison service, Android mobile operating system, and advertising services.