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Google proposes concessions: it will allow application developers to use alternative systems to process payments within App in the UK

2025-01-19 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > IT Information >

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CTOnews.com, April 20 (Xinhua) Google has promised to allow App developers to use alternative systems to handle payments within App in the UK instead of Google Play billing system, the UK Competition and Market Authority said.

After a 10-month investigation by the UK Competition and Markets Authority (CMA) into buying a payment system in Google's app, Google has come up with a proposal to give developers in the UK the option of using other payment options. Earlier, CMA found in a separate survey that Apple and Google formed an "effective duopoly" in the mobile ecosystem, and that Google's Play store could lead to "higher prices and fewer choices for Android users."

CMA is currently soliciting feedback on Google's proposal until May 19. If the group decides to make the proposal legally binding based on feedback, developers will be able to offer their own payment system of choice, called developer Independent Billing (DOB), or another payment system next to Google's payment system, called user Choice Billing (UCB). However, Google still charges developers for services (usually 15 to 30 per cent of their income), just lower than usual. When developers do not provide Google Play billing system at all, their service fees will be reduced by 3%. If they choose to offer another payment method next to Google's billing system, and users choose that method, their service charges will be reduced by 4%.

"the service fee for distributing applications through Android and Google Play is still based on digital sales on our platform," Google explained in an article on its proposal. "Service fee is our support for continued investment in Android and Google Play, reflects the value provided by Android and Google Play, and is how we make money as a business."

Last year, Google allowed Android app developers in several EU countries to use third-party payments. The company will also charge a service fee when users choose any billing system, but the rate will also be reduced if users use alternative billing methods to pay.

Google said that if CMA decided to adopt its proposal, it would implement it in phases. Developers of non-game applications will be the first to be able to add alternative billing systems, and game application developers will be able to add alternative billing systems by October 2023.

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