Google Adding New Developer Fee under DMA compliance: Following Apple

Google has recently announced it will comply with the European Union’s Digital Markets Act (DMA)- saying “Beyond the March deadline, we will continue to work with the European Commission and industry to ensure we continue to offer products and services that are helpful, safe and compliant to people and businesses in Europe”.

Google has announced that it will now charge the developer even if they will not use the Play Store. It is just like Apple does with the app store. Sources are saying Google has taken this step to increase the competition of app stores.

In its recent blog post, Google has shared the details about the new fees. The company will now be charged two new fees:

Also read – Google’s Morale Crisis: Things Aren’t Good at Google

First, they state an initial acquisition fee, under which developers will have to pay 10% for in-app purchases or 5% for subscriptions for two years. “The time period for the ‘initial acquisition’, in turn, will take into account the way that app developers typically monetize apps.”- said Google.

The developers will have to pay an ongoing fee of 17% for in-app purchases or 7% for subscriptions. Under these parental controls, security scanning, and other services will be covered.

Additionally, Google stated that-” Since users acquired the app through Play with the expectation of services such as parental controls, security scanning, fraud prevention, and continuous app updates, discontinuation of services requires user consent as well. Subsequently, ongoing services and associated fees will no longer apply to these users. Developers are still responsible for reporting transactions involving users who choose to continue receiving ongoing services from Play.”

Google has also provided a sample of purchase so that the developers can understand it better. You can check the image below to get a clear idea.

However, the developers can use both Google Play’s billing system and participate in the external offers program. As a developer, if you want to participate in the external program then you have to sign up with this program. After enrolling in the program the developers can select the app which they want to enrol in.

Also, read – Google Genie AI

Google has also stated that “This program is limited to EEA users. Developers from other regions can enroll in the program to target users in the EEA outside of the Play App.”

Although Google is following the route of Apple with these new policies. Apple has also reduced its app store commission but introduced a new core technology fee. Under this, the developers have to pay €0.50 for each first annual install per year.

Google is justifying this new fee process by saying- “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 provide the continuously growing suite of tools and services that help developers build successful businesses, all while keeping our platforms safe and secure for billions of users worldwide.”