Google has announced changes to its mobile app ecosystem in accordance with the newly enacted European Digital Markets Act (DMA). The company plans to impose new charges on developers, even if their apps are disseminated outside the Google Play marketplace, mirroring Apple’s approach with the App Store.
New Developer Charges
For the first two years, there will be an initial fee of 10% on in-app purchases and 5% for subscription services. This fee is designed to cover the value provided by the app store in initially attracting users. A longstanding platform service fee of 17% on in-app purchases and 7% on subscription services is to be introduced. This fee is intended to cover the services provided by the platform, including parental control, security measures, fraud protection, and app updates.
Opting Out of Platform Services
After two years, developers may opt-outs from these charges, provided that users give their consent. However, platform services won’t be provided in such cases. Google clarified, “Since users purchased the app on Play, expecting services such as parental control, a security scanner, fraud protection, and regular app updates, discontinuing of services also requires the user’s consent.”
Google further added, “Play’s fees support our investment in Android and Google Play and reflect the value provided by Android and Play, including enabling us to distribute Android for free and satisfying an ever-growing set of tools and services that help developers build a successful business while maintaining the security of our platforms for billions of users worldwide.”
