Google Loosens Play Store Grip in Europe
Alphabet (NASDAQ:GOOG) is loosening its grip on European app developers after regulators cracked down on its Play Store practices. Google said it's rolling out changes to its external offers program, giving developers more leeway to steer users toward their own platforms instead of being locked into Google's payment system. To qualify, developers still have to meet eligibility rules and sign up for the program.
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The shift comes after the European Commission ruled in March that Google was favoring its own services like Shopping, Hotels, and Flights in search results, while also blocking developers from directing customers elsewhere. Regulators accused the company of unfairly boosting its own ecosystem and overcharging rivals in the process.
Google insists it's walking a fine line. Clare Kelly, senior competition counsel for Google in Europe, said the updates could carry risks for users, but stressed the company is trying to balance compliance with safety. Still, Brussels is watching closely, and Google's Play Store revenue model could look a lot different if these changes stick.Investors will want to see how the company adapts as EU oversight intensifies heading into 2025.
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