
How Google plans to ‘change' Play Store to avoid future fines in Europe
has announced a series of proposed changes to its Play Store in a move aimed at appeasing European Union (EU) regulators and avoiding hefty future penalties. These adjustments come in the wake of a stern warning from EU watchdogs in March, who accused Google of stifling competition by preventing
third-party developers
from directing customers to make app purchases outside the Android ecosystem.
According to a report by Bloomberg, the proposed overhaul is designed to make it easier for developers to guide users away from the Play Store for transactions. This new policy will apply across 30 European countries. According to Google, apps will now be permitted to direct users to the web to complete purchases.
Google Play Store adjustments to have revised conditions
However, this shift is not without new conditions, as Google will introduce a revised fee structure to account for its operational costs, the report added.
Under the new model, 'initial acquisition fees' for developers will see a reduction from 10% of transaction costs down to 3%. Despite this reduction, the company will implement a tiered fee structure for software makers.
Google has also voiced concerns that allowing users to transact outside the Play Store's 'secure environment' could potentially lead to 'serious security threats.'
Clare Kelly, Google's senior competition counsel, commented on the changes, stating, 'While we still have concerns that these changes could expose Android users to harmful content and make the app experience worse, we're updating our External Offers Program for the EU with revised fees and more options for Android developers' following extensive discussions with the European Commission.
Apple App Store implemented similar adjustments earlier this year, even while pursuing a legal challenge against the regulatory clampdown. It is to be noted that to date, only Apple and Meta Platforms Inc. have faced DMA fines, totaling €500 million ($583 million) and €200 million, respectively.
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