Google will allow alternative payment methods in the app market

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Google has announced that it will open its Google Play application to alternative payment methods to meet new European regulations.

The issue of alternative payment methods in app marketplaces has been controversial, with Apple losing a legal battle last year in the United States against Fortnite maker Epic Games over the issue.

In a blog post on Tuesday, Google said it acknowledged that the recently passed Digital Marketplaces Act would force Google Play and other industry players to adjust the models of how their online marketplaces operate for European users.

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

“This means that developers of non-gaming apps can offer their users in the EEA an alternative to Google Play’s billing system when paying for digital content and services,” she added. .

These developers will get a reduction in the fees they pay to have their app appear on Google Play, but will still have to pay Google.

Game developers will continue to be required to use Google Play’s billing system for the time being, but he said he plans to have alternatives before new EU regulations come into force.

The level of fees charged by the two tech giants on transactions made on the Apple App Store and Google Play have been at the heart of the dispute between Epic Games and Apple.

Tech giants say these are appropriate to keep their online marketplaces safe and they can continue to develop their operating systems.

Google said fees 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%.

Changes apply only in the European Economic Area.

Earlier this year, the Dutch competition authority asked Apple to open the App Store to alternative payment methods in the Netherlands.

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