
In March, the European Commission determined that Google’s Play Store policies do not comply with the EU Digital Market Act because they prevent mobile app developers from freely steering their customers to other payment systems that may offer better prices. Today, Google proposed some changes to its Play Store policies that it hopes will meet the EU’s needs.
“While we still have concerns that these changes could expose Android users to harmful content and make the app experience worse, we’re updating our External Offers Program for the EU with revised fees and more options for Android developers,” a Google statement explains.
In its original complaint–which also included numerous Apple and Google Search violations–the Commission noted that Google “technically prevents certain aspects of steering, for instance, by preventing app developers from steering customers to the offers and distribution channels of their choice.” To address this, Google proposed that developers selling apps in the European Economic Area (EEA) be allowed to direct their customers to payment systems outside the Play Store.
The EU also said that while Google was allowed to “receive a fee for facilitating the initial acquisition of a new customer by an app developer via Google Play, the fees [it] charged go beyond what is justified.” It specifically called out that Google “charges developers a high fee over an unduly long period of time for every purchase of digital goods and services.” To address this complaint, Google proposed changing its fee structure from 10 percent of each transaction to a far more reasonable 3 percent while creating a two-tier structure for ongoing fees with reduced costs and shorter durations.
“The revised program [provides] more developer flexibility to direct users from their app via actionable links, with more options to conclude contracts for their offers, as well as the ability to link to enable download of their apps,” Google explains on its Play Console Help support site. “[It also provides] an updated fee model, including reduction of the duration and level of the initial acquisition (IA) fee, as well as splitting of the ongoing service fee into two tiers for ongoing services. Tier 1 [is] a required tier for essential services that developers need in order to have a safe and reliable app, and tier 2 [is] an optional tier for additional services.”
Basically, Tier 1 involves the Play Store app listing, with details, rating, and compliance information, plus the ability for users to find the app with an exact search. Tier 2 adds more general search compatibility, the ability for the app to appear in “discovery, recommendation, and editorial surfaces,” and an enhanced Play Store listing with additional information. Both tiers provide all the normal Play Store promises around malware and vulnerability scanning, on-device protections, developer verification, content ratings, and data safety information.
Google is making these changes available today, though it’s possible that the Commission will find further issues. The company says it will make further changes later in 2025 that impact the APIs that developers will use to link to external app downloads.
While there will always be objections to specifics, these proposals are far more reasonable than anything Apple has offered to date. The reason for that is simple: Apple’s foot dragging has worked for it so far, with the EU fining it just €500 million to date. Google, meanwhile, has been hit with penalties of over €8 billion in penalties in the past few years for various antitrust transgressions. Money talks.