LogInThe service fee for the developers who use alternative payment systems will be reduced by 3%.
Google has announced a new program aimed to support billing alternatives for users in the European Economic Area (EEA).
The program suggests that the developers of non-gaming apps will now be able to add alternative payment systems to apps published on Google Play. These systems must comply with Google's user protection requirements, while service fees and conditions will continue to apply.
The service fee for the developers who will use alternative payment systems will now be 3% less. Google estimates that 99% of app creators have annual revenue of less than $1 million – those developers pay a 15% commission. For them, the fee will be 12% if they use an alternative billing system. Developers who generate $1 million or more in app revenue per year and use Google's payment system, now pay a 30% commission, so when using an alternative billing system, the fee will decrease to 27%.
Google also noted that starting July 19 it will no longer remove the non-gaming apps from developers who participate in the program as well as will not reject updates for these apps. Google Play’s billing system, however, will continue to be required for all mobile games developers as well as developers from outside the EEA.
Google has allowed the use of alternative payment systems in Android applications in Europe due to the new legislation introduced in the Digital Markets Act (DMA) announced by the European Union. It will oblige large technology corporations to allow developers to place applications in their app stores without the mandatory use of their payment systems.
Although DMA hasn't come into force yet, Google decided to implement the alternative billing systems now as, according to the company, it will allow it to "work closely with our developer partners and ensure our compliance plans serve the needs of our shared users and the broader ecosystem." Google also shared that it is planning to expand billing alternatives to developers of gaming apps as well in the near future before the DMA comes into effect.