At first glance, it looks like Google is making a big concession. The American group announced on Tuesday that it will now allow developers distributing their apps on Google Play in Europe to use payment systems other than its own. “The recent passage of the Digital Market Act will force Google and its competitors to rethink their models in Europe. We are committed to meeting these new requirements“, the press release of the group clarifies.
The Digital Markets Act, which will take effect in 2024, sets out a list of anti-competitive behavior prohibited for dominant technology players. Among them is the current requirement for app developers to use the payment systems of Apple and Google, which charge large fees for all transactions. This situation raised the ire of major digital players such as Epic Games or Spotify, and led to the creation of the Coalition for App Fairness lobby.
Barely reduced commissions
But the devil is in the details. First, mobile games, which are the most profitable applications in the industry, are not affected by this initiative. At least initially. First of all, developers who choose not to go through Google’s payment system still have to pay a commission.
“Commissions will be applied to support our investments in Google Play and Android. They will go down by three points“, the group explains. Specifically, the commission for 15% reaches 12%, and for 30% – 27%. Add in the fees charged by alternative payment systems, so the bill can be even heavier for developers who would prefer to break free from Google.
“Kudos to Google for quickly following Apple’s lead in exposing fake invoices in Europe.“, exclaimed Tim Sweeney on Twitter, the executive director of Epic Games, who has taken legal action against the two American giants on this particular issue. “Google “allows” competing payment systems, but removes the ability for them to compete. (…) Google has a long history of pseudo-open initiatives, starting with Android, which “allows” competing app stores only to obstruct them.»
As Tim Sweeney points out, Google is following in the footsteps of Apple, which has made similar offers in the Netherlands and South Korea. Developers who don’t go through its payment system must submit a monthly sales report and then receive an invoice within 45 days. The applicable rate in Korea will be 26%.
Source: Le Figaro
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.