Google complies with DMA by opening its store’s payment system to developers

Google announced on July 19 that app developers in the Google Play Store can now use an alternative payment system. Nevertheless, they do not escape any levy. The latter is simply reduced by 3%. It therefore increases to 12% for developers taxed at 15% (on the first million dollars of annual turnover) and to 27% for those deducted at 30% at the outset.

Game developers not affected

This change only applies within the European Economic Area (EEA) (27 EU member states plus Iceland, Liechtenstein and Norway). Another important clarification: it does not yet apply to video game developers. This rule is expected to change by the effective date of the Digital Markets Act (DMA). It is this text that should be implemented”in the course of next year“, according to Margrethe Vestager, the European commissioner for competition.

There is no guarantee that the changes proposed by the Mountain View firm are sufficient to comply with the DMA. Indeed, by imposing an admittedly reduced tax, Google has ensured a certain pressure on developers while maintaining its dominant position in the application distribution market.

Tim Sweeney, founder and CEO of Epic Games, a reacted to Google’s announcement by denouncing “false ‘open’ invoicing”. The latter has been in a row with Google and Apple since Fortnite, owned by Epic Games, was banned from app stores after introducing an alternative payment method for in-app purchases.

A battle against Match Group

Google’s monetization policy has been criticized for several years. Recently, it was Match Group, parent company of Meetic and Tinder, which filed an appeal in May before a Californian court. A few days later, they announced that they had reached a temporary agreement to use a third-party payment system. Match Group can now offer alternative payment systems to that of Google without being removed from the Play Store. The Mountain View company is committed to considering updates to Match Group applications that include third-party payment systems.

The company recently agreed to pay $90 million to developers who accused it in a California court of abusing its position.

Google follows in Apple’s footsteps

Apple faces the same criticism, applying a similar levy system deemed unfair. After several months of proceedings and having been fined 50 million euros, he finally agreed to submit to the requirements of the Autoriteit Consument & Markt (CMA), the equivalent of the Competition Authority in the – Down.

Now Dutch developers can offer an alternative payment method within their app without fear of being delisted. They must always keep paying a commission to the company. But Apple’s troubles don’t end there. The European Commission is investigating the App Store and Apple Pay wishing to verify that antitrust regulations are respected.

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