Google has something up its sleeve to appease the UK's regulatory watchdog.
The tech giant recently announced it is proposing other ways to pay app developers offering their apps through its UK Play mobile app store to avoid being probed by the UK's Competition and Markets Authority (CMA).
The CMA previously initiated its investigation on Google's payment of app developers in June 2022 to address its concerns about Google Play's rules, according to a Reuters report.
Google's Proposal
Google mentioned in its recent proposal that it is willing to give app developers offering their apps through the company's UK Play mobile app store an alternative in-app billing system for their mobile and tablet users in the UK.
Should the CMA accept Google's proposal, Android users can choose which billing system to use at checkout when buying in-app purchases. Additionally, Google will neutrally present these alternative options, allowing users to make "an informed and engaged choice."
Meanwhile, developers can alternatively choose not to offer Google Pay billing at all when their users in the UK are paying for digital content and services. However, the service fees for distributing apps via Android and Google Play will continue to be based on digital sales through Google's platform.
Should a user select an alternative billing option, Google will reduce the app developer's service fee by 4%. Google will also reduce its service fee if an app developer chooses not to offer Google Play billing at all, though it would only deduct 3% instead of 4%.
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According to Google, the service fee is a reflection of the value provided by its Android and Google Play platforms and how it earns money as a business. It is also what the company uses to support its ongoing investments in Android and Google Play.
Regardless if an app developer offers Google Play billing or not, developers are still required to meet appropriate user protection requirements. Should the CMA accepts this proposal, Google will roll out its alternative billing options no later than Oct. 2023.
The CMA's Concerns
The CMA's investigation into Google's app store payments is the third one it launched in recent years, with the regulatory watchdog setting a December 2022 target back in June of the same year for an initial probe into how Google's Play Store rules require app developers to use the company's payment system, Google Play Billing, for in-app purchases, per Politico.
According to the watchdog's June statement, Apple and Google have an effective duopoly on mobile ecosystems, allowing them to have a "stranglehold" over them, which include operating systems, app stores, and web browsers on mobile devices.
"Without interventions, both companies are likely to maintain, and even strengthen, their grip over the sector, further restricting competition and limiting incentives for innovators," the CMA said.
However, the CMA said that Google's proposal would give app developers the freedom to offer a different billing system of their choosing or offer users a choice between a different billing system or Google's.
Despite this somewhat complimentary comment, anyone who wishes to comment on Google's proposal could do so until May 19 via writing or an online form.
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