HomeLatest NewsIndustryGoogle falls in line, says ready to open payments app to meet new EU IT rules

Google falls in line, says ready to open payments app to meet new EU IT rules

Google said that it recognised that recently adopted Digital Markets Act would require Google Play to adjust the operating models of their online marketplaces for European Users.

Preferred Source of Google

Facing new EU regulations, global technology major Google has announced to open its Google Play application to alternative payment methods in order to meet new EU regulations.

The issue of alternative payment methods on app marketplaces has been contentious, with losing a legal battle last year in the against Fortnite-maker Epic Games on the question.

While falling in line, Google said that it recognised that recently adopted would require Google Play and other industry players to adjust the operating models of their online marketplaces for European Users.

Advertisement
Infosec Reimagined
Infosec Reimagined
Infosec Reimagined is the premier information security summit where top leaders—CISOs, CROs, CIOs, CTOs and risk executives—converge to redefine cyber resilience.
Register Now →
Digital Senate
Digital Senate
Digital Senate is a premier conference uniting government leaders, technologists and innovators to share ideas, success stories and strategies on digital governance, public sector transformation, cybersecurity and emerging technologies in India.
Register Now →
National DefTech Summit
National DefTech Summit
An annual gathering of defence technology professionals from government, public sector, enterprises and startups.
Register Now →

“As part of our efforts to comply with these new rules, we are announcing a new program to support billing alternatives for EEA users,” Estelle Werth, Google’s director for EU Government Affairs and Public Policy said.

“This will mean developers of non- apps can offer their users in the EEA an alternative to Google Play’s billing system when they are paying for digital content and services,” Werth added.

Those developers will get a reduction in the fee they pay to have their app appear on Google Play but will still have to pay Google. Games developers will continue to be required to use Google Play’s billing system for the moment, but it said it planned to have alternatives available before the new EU regulations go into force.

Advertisement

The level of the fees charged by both tech giants on transactions made on Apple’s App Store and Google Play were at the heart of the dispute between Epic Games and Apple.

The tech giants contend these are appropriate to ensure their online marketplaces are safe and they can continue to develop their operating systems. Google said the fee would be reduced by three percentage points.

For apps that generate more than $1 million in revenue per year that means the fee will drop to 27% of the transaction. For smaller developers, the fee will drop to 12%.

Advertisement

The changes apply only in the European Economic Area. The Dutch competition authority earlier this year required Apple to open the App Store to alternative payment methods in the Netherlands.

NEWSLETTERThe Daily BriefingThe day's top enterprise technology stories, curated by our editors. Monday to Friday.

Free. One-click unsubscribe anytime. We never share your email.

Tech Observer Desk
Tech Observer Desk
Tech Observer Desk at TechObserver.in is a team of technology reporters led by a senior editor who brings latest updates and developments from the world of technology.
Advertisement
- Advertisement -
- Advertisement -

iOS 27 review: Smarter Siri, useful refinements and better everyday iPhone experience

Apple's iOS 27 brings the biggest Siri overhaul in years, but its more important achievement may be making everyday iPhone tasks faster, clearer and less frustrating.

RELATED ARTICLES