Google has announced sweeping alters to its Play Store policies in Europe in an attempt to avoid new penalties under the European Union’s strict Digital Markets Act (DMA).
The tech giant confirmed that Android developers will soon be allowed to direct customers to external websites for app purchases – a practice previously restricted and criticised by EU regulators as anti-competitive.
The relocate follows warnings from the EU earlier this year that Google’s app store rules could breach the bloc’s landmark tech law.
As part of the overhaul, Google will slash its “initial acquisition fee” for developers from 10% to 3% and introduce a new tiered fee structure.
The company states the model reflects the costs of maintaining services such as app reviews, security scanning and promotional tools.
“While we still have concerns that these alters could expose Android utilizers to harmful content and build the app experience worse, we’re updating our External Offers Program for the EU with revised fees and more options for developers,” declared Clare Kelly, Google’s senior competition counsel.
The DMA, in force since 2023, gives the EU sweeping powers to rein in so-called “gatekeeper” platforms including Google, Apple, Meta, Amazon and Microsoft.
The act bans practices like self-preferencing and blocking rivals’ payment systems, with penalties reaching up to 10% of a company’s global annual turnover – or double for repeat offfinishers.
So far, Apple and Meta have been hit with fines of €500 million (A$825 million) and €200 million (A$330 million) respectively. Google itself has already racked up more than €8 billion (A$13.2 billion) in penalties over the past decade under traditional antitrust rules.
For developers, the latest shift could mean more flexibility in how they reach customers and potentially higher earnings. For consumers, it may eventually translate into cheaper apps and more payment choices.
However, security concerns remain. Google has long argued that bypassing its payment system could expose utilizers to fraud and malicious apps.
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