Google is sharing new details about the fees associated with its compliance with Europe’s Digital Markets Act (DMA), which aims to increase competition in the app store ecosystem. While Google previously mentioned its DMA compliance efforts, such as allowing app sideloading, it had not outlined the specific fees for developers. However, these details have now been revealed.
Google has introduced two fees as part of its External offers program, which was announced recently. This program enables Play Store developers to lead users in the EEA to offers outside their app, facilitating promotion.
Following Apple’s approach of reducing App Store commissions in the EU to comply with the DMA, Google has implemented an initial acquisition fee and an ongoing services fee for the External Offers program transactions. The initial acquisition fee represents the value provided in user acquisition through the Play Store, while the ongoing services fee includes broader value provided to users and developers, such as parental controls and app updates.
Developers have the option to opt out of ongoing services and fees after 2 years with user consent. However, opting out will also negate the corresponding services provided by the Play Store. Despite this, developers must still report transactions involving users who continue receiving Play Store services.
Image Credits: Google
Google has also provided additional examples of how the fee structure will operate and addressed common developer queries, clarifying that the program is opt-in, applies to all apps and games, and allows developers to opt-in for select apps only. Developers must register as a business, not as individuals, and can continue using Google Play’s billing system alongside participating in the External Offers program.
In addition to the External Offers program, Google has launched two other programs this week to allow alternative billing systems for in-app purchases for EEA users, further expanding options for developers.
