Google will reduce fees for competing payment systems in the Google Play Store in the future. The group thus responds to increasing pressure from the EU.
European users of the Google Play store will have more options for purchasing apps in the future. Google will reduce fees for developers who switch to competing payment systems. The group thus responds to the new technological regulations of the European Union.
The EU is bringing Google to its knees
Just like a news agency Reuters announced that fees for competing payment systems are to be reduced from 15 percent to 12 percent. This measure initially only applies to European consumers. In addition, game applications are excluded from the reduction for now.
With this step, Google responds to increasing pressure from European regulatory and antitrust authorities. In addition, it was recently approved by the European Parliament Digital Services and the Digital Markets Act. Both laws are intended to regulate the Internet more closely.
For example, the Digital Markets Act also requires tech giants to allow app developers to use competing payment platforms for sales. If companies do not comply, they face fines of up to ten percent of their global sales.
Google and Apple most affected by regulations
Together with Apple, this regulation applies in particular to Google. According to Reuters, the fee reduction shows that Google is changing its strategy towards European regulatory and antitrust authorities. The group caved in to pressure from the authorities and made concessions rather than engage in protracted battles.
But while the three percent cut in fees is a first step, critics still see Google and Apple’s app store fees as unnecessarily high. App developers must collectively pay billions of dollars a year, underscoring the monopoly of the tech giants.
Over the past decade, Google has been fined more than €8 billion in EU antitrust fines for anti-competitive practices related to its comparison services, its Android mobile operating system and its advertising service.