2 years, 8 months ago

Google to allow app developers to use rival payment systems, to cut fees

Alphabet unit Google said it will from Tuesday cut fees to 12%, from 15%, for non-gaming app developers on its Google Play App Store which switch to rival payment systems, as it moves to comply with new EU tech rules. The EU rules known as the Digital Markets Act, which will come into force next year, require tech giants to allow app developers to use rival payment platforms for app sales or risk fines of as much as 10% of their global turnover. "This will mean developers of non-gaming apps can offer their users in the EEA an alternative to Google Play's billing system when they are paying for digital content and services,” she said. Critics say the fees charged by Apple and Google at their mobile app stores are needlessly high and cost developers collectively billions of dollars a year, underscoring the two companies' monopoly power.

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