The Google Play Store will receive alternative payment options for non-gaming apps in Europe, specifically the European Economic Area (EEA). With this, Google wants to meet the requirements of the new Digital Markets Act, which will come into effect at the beginning of 2023.
With the Digital Markets Act (DMA), the European Union wants to limit the power of tech giants, so that no abuse of power can take place. A lot of things are going to change, which in many cases can have a positive effect on the consumer.
The law was approved by the European Parliament earlier this month and will apply from the beginning of 2023. Before that, Google wants to have its digital affairs in order; that’s why the search engine giant is announcing changes now and making changes soon.
If Google, or another so-called ‘gatekeeper’ does not arrange this in time, there is a hefty fine hanging over your head. This can amount to ten percent of worldwide turnover or twenty percent when a company repeatedly makes mistakes.
Alternative payment options for Google Play
Developers get the necessary tools from Google to be able to use the payment options implement. Once everything is up and running, those developers still have to pay a fee to Google. Think of twelve percent of a transaction amount, for the first million within a year. If you convert more, that percentage can rise to 27 percent. In both cases, that’s three percentage points less than the company’s other rates.
Google tries to justify these rates on a support page. You should not see those costs as transaction fees, but as the value you pay for the Android and Google Play platforms.
This change ensures that apps don’t just disappear from Google Play when they are within the HONOUR offer alternative payment methods. That would happen sooner, according to the rules that apply from 1 April. Almost two years ago announced Google made changes to ensure that Google Play remains secure by forcing every app to work with Google’s payment system. But within the EEA, that kite does not apply.
Of course, Google does suggest some to demand for the alternative payment options. For example, providers of apps must have their own customer service and ensure that payments are made securely. In addition, payments may only be made within the app.