EU pushes Google to loosen rules on its digital store
The European Union has been closely monitoring big tech companies for months now, and Google is the latest to give in. Following warnings from Brussels, the company will now allow app developers to redirect users outside of Google Play to make purchases, something that was previously limited or penalized with high fees. The European Commission had pointed out that the parent company, Google, was violating EU rules by blocking developers from informing users about cheaper alternatives outside of its ecosystem. Additionally, the organization accused Google of charging fees “beyond what is justified” when creators acquired new customers.
Changes to Google Play’s terms
Under this pressure, Google announced that it will reduce its fees and provide more “flexibility” for developers to link to their own payment platforms. Clare Kelly, Google’s senior competition advisor in Europe, the Middle East, and Africa, acknowledged that the company has some reservations: “We are concerned that these changes may expose Android users to harmful content and worsen the app experience. Nonetheless, we are updating our External Offer Program with revised fees and more options for developers.”
In terms of numbers, Google claims that Google Play and Android have generated over 3 billion euros in revenue for European developers, highlighting the economic value their ecosystem brings. However, the Commission insists that this success cannot be sustained at the expense of restricting competition.
The framework of the Digital Markets Act
These changes do not happen in a vacuum. Since the Digital Markets Act came into effect in 2023, Brussels has been closely monitoring giants like Google, Meta, and Apple to prevent abuses of power. The regulation aims to balance the digital market by limiting practices that excessively favor dominant platforms.
In April, the European Commission fined Apple 500 million euros and Meta 200 million for violating the DMA. Now, Google faces the same pressure and seems to be opting for adaptation to avoid hefty sanctions.
What’s next for developers and users
The change marks a before and after for the Android ecosystem in Europe. Developers will now be able to more openly inform users about alternative payment methods or subscriptions outside of Google Play, potentially leading to more competitive prices and greater leeway for smaller companies. However, Google maintains a cautious stance, warning that this new framework may also bring security risks and impact the user experience. In any case, the move reflects a clear trend: the European Union wants to put a stop to the excessive control of big tech companies, and Google had no choice but to adapt.
