Alternative payment systems for European Google users allow developers of apps that don’t fall into the games category. In a blog post, the company outlined its plans to comply with the Digital Markets Act (DMA).
The DMA received the necessary approvals from the European Parliament earlier this month but is not expected to take effect until spring 2023. Of course, Google is introducing changes ahead of time to ensure that its financial programs meet the needs of users.
Digital Markets Act
It requires companies with a market capitalization of €74 billion or more to comply with a set of rules aimed at promoting competition between digital platforms. Failure to comply with these rules can result in a fine of up to 10% of a company’s global revenue or 20% in case of repeated violations.
According to The Verge, Android developers who prefer to use alternative payment systems will still have to post $1 million in their first transaction within a year.
Pay the service fee to Google. However, the company says it will cut fees by three percent, which means its fees per transaction will drop by 12 percent.
If developers earn more than $1 million in a year, their transaction fees will increase by 27%.
Google has provided explanations in its support section to justify the fee charged to developers
It notes that this fee is not for processing payments and instead reflects the value offered by Android and the Play Store.
Internet search giant
As part of its new policy, it commits that from now on, applications that use alternative payment systems meet the company’s requirements.
Do not delete your application from the store. This means providing services to users in the European Economic Area and also preventing access to users who are not located in this area. Developers must also provide customer support based on their chosen billing service.
There have already been complaints about Google’s in-app payment policy in the United States, including the case of Tinder Match Group. The claims raised in these cases mirror those in the Epic Games case against Apple.
which says the Cupertino-based tech giant forces developers to use the App Store’s internal payment systems; A trial that ended with a different verdict. Of course, the Epic Games case against Google is still ongoing.
Google despite adjusting its policies in Europe
It has made the least concessions to US developers, and when they do, they make the most exceptions for big companies.
The internet search giant apparently terminated its contract with Netflix in response to complaints about subscription fees, and then allowed certain developers on a trial basis.
Use the payment systems you want, such as Spotify. Google also allowed Match Group to use an alternative payment system.