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Alternative payment methods on the Play Store

In order to comply in advance with the new European regulation on digital markets, the Google company has made a major concession on the rules of the Play Store, its mobile application store. After years of chasing in vain after the offenses of these multinationals in endless legal proceedings, Brussels wants to act upstream, by imposing twenty rules on them to respect under penalty of dissuasive fines.

Objective: to act quickly and effectively, before abusive behavior has destroyed competition. “It will no longer be the European Commission but the companies themselves who will have to prove that they allow free competition”, underlined the German MEP Andreas Schwab (EPP, right), rapporteur for the DMA.

These changes, presented on Tuesday, July 19 in a press release from the company, come into force only in the European Economic Area. They now allow application developers to offer their own payment system, and no longer automatically that of the Google Play Store. “As part of our efforts to comply with these new rules, we are announcing a new program to support alternative payment services for users in the European Economic Area”, wrote the American group on Tuesday July 19 in this press release.

Approved in early July by the European Parliament, the regulation on digital markets (DMA) which will come into force in 2023, plans to stem the anti-competitive practices of digital giants. The legislation establishes Commission control over all takeovers of these giants, regardless of the size of the target, to limit the capture of start-up innovation and acquisitions aimed at destroying a competitor .

Among the new rules, they will no longer be able to promote their own services or impose the use of their technologies on the users of their platforms. The business model of Google and Apple, the leaders in mobile operating systems, is based in particular on collecting commissions on any purchase made through them.

However, Google says it will continue to charge a commission on transactions within third-party apps to “support investment in Android and (Google) Play.”

“Google Play’s billing system will continue to be required for apps and games distributed through Play to users outside the EEA, and for games distributed to users within the EEA. We plan to expand billing alternatives to game app developers for their users in the EEA, prior to the DMA’s effective date,” the statement read.

Its rate will be reduced by 3 points, and will therefore go from 30% to 27% for applications that generate more than one million dollars in annual revenue, and from 15% to 12% for the smallest developers, which represent 99% of those present on the platform.

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