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Google Play Store to allow apps to use third-party billing system in EU, thanks to DMA

Google announced that it will allow Play Store app developers to offer alternative billing systems to users in the European Economic Area

What's the news: Google on July 19 announced that it will allow apps on Play Store to offer alternative billing systems to users in the European Economic Area (EEA), which includes countries in the European Union, Iceland, Liechtenstein, and Norway. Why does this matter: Developers have criticised Apple App Store and Google Play Store for forcing apps to use in-app billing systems and levying excessive commissions. But due to regulatory pressure from around the world, both companies have had to make concessions in the last year. The concession in Europe is the most significant one the company has had to make to date and might be a sign of what is to come to the rest of the world, including India, where developers have been fiercely fighting Google. Why now: Google said that its decision is a result of the recently passed Digital Markets Act (DMA), which will force app stores to allow third-party billing systems and app stores when it goes into effect. What's the catch: Only 3 percent less commission: "When a consumer uses an alternative billing system, the service fee the developer pays will be reduced by 3%. Since 99% of developers currently qualify for a service fee of 15% or less, those developers would pay a service fee of 12% or lower based on transactions through alternative billing for EEA users acquired through the Play platform," Google explained. A 12 percent commission could still be seen as too high by developers. Google, however, defended the fee stating that the "service…

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