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Google has announced that it will introduce user choice billing in the U.K., enabling Google Play developers to utilize alternative billing options in addition to Google’s own system, starting from March 29, initially for non-game developers.

Developers who opt for this option will not be able to replace Google Play billing entirely; instead, the third-party billing option will be presented as an alternative choice for users.

Developers who choose to use an alternative billing option will receive a 4% discount on the fees they pay to Google, which accounts for the potential fees charged by third-party billing providers. Typically, Google takes a cut of up to 30% on in-app transactions and paid downloads.

In a blog post announcing the change, Google stated that over 90% of developers on its platform are “satisfied” or “very satisfied” with Google Play’s native billing. However, the company acknowledged that some developers may desire more flexibility in processing payments, and this launch enables them to offer an additional billing system alongside Google Play’s billing system, allowing users to choose their preferred option at checkout.

The motivation behind Google’s move is not entirely altruistic.

Google’s decision is actually a response to a Competition and Markets Authority (CMA) investigation that began in 2022. At that time, the competition watchdog published a report based on a year-long study of the mobile ecosystem, highlighting that both Google and Apple’s market power could be subject to regulatory scrutiny, with a particular focus on their app stores, where they were the sole in-app billing providers for their respective platforms.

This was just the beginning. In 2023, Google proposed offering user choice billing to developers to settle the antitrust probe. The CMA opened up a consultation and invited developers to provide feedback on Google’s proposal.

The CMA ultimately closed the probe against Google and Apple last year, noting that it planned to use regulatory reforms, such as the digital market competition bill, to regulate these companies in the mobile market.

In the meantime, Google has been allowing third-party billing in various countries in response to regulatory pressure to increase competition in its app store.

Countries where Google already offers user choice billing include the U.S., India, Australia, Indonesia, Japan, and the European Economic Area (EEA), all of which have the same commission and charging structure as the U.K.


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