Today, Google announced that it will start offering billing of the user’s choice in the UK, giving Google Play developers the option to use other billing options instead of Google’s own system. The change goes into effect on March 29, initially for non-game developers only.
If developers choose it, they will not be able to completely replace Google Play billing. Instead, the third-party method will be offered as an option.
Developers who choose to use the alternative billing option receive a 4% discount on the fees they pay to Google (to account for fees that may also be charged by third parties). Google typically receives up to 30% of in-app transactions and paid downloads.
In a blog post announcing the changes, Google claims that more than 90% of developers on its platform are “satisfied” or “very satisfied” with Google Play native billing. However, the company added: “We understand that some developers may want to have more choice in how they process payments. This launch allows developers to offer an additional billing system alongside Google Play’s billing system, and users can choose which option to use at checkout.”
The backstory is a little less rosy than Google just being a nice guy.
This move by Google is actually a long-awaited response to an investigation by the Competition and Markets Authority (CMA) that began back in 2022.
At that time, the competition authority published a report based on a year-long study of the mobile ecosystem and noted that Google and Apple’s market power could be subject to regulatory scrutiny. The companies’ app stores, where they were the sole providers of billing services for their platforms, became a particular point of focus in the investigation of Google and Apple’s anticompetitive duopoly status.
And that was just the beginning. In 2023, Google offered developers billing of the user’s choice to settle an antitrust investigation. In response, the AMC launched consultations and invited developers to provide feedback on Google’s proposal.
Last year, the AMC ultimately closed the investigation against Google and Apple, noting that it plans to use regulatory reforms, such as the draft law on competition in the digital market, to regulate the activities of these companies in the mobile market.
Meanwhile, in response to pressure from regulators to open up its app store to more competition, Google has allowed it to accept third-party billing in other countries.
Countries where Google already offers billing of the user’s choice include the United States, as well as India, Australia, Indonesia, Japan, and the European Economic Area (EEA), where the same fees and charges apply as in the UK.
