Google announced today that it will introduce user choice billing in the U.K., allowing Google Play developers to utilize alternative billing options instead of Google’s own system. The implementation of this change is set for March 29, initially only for non-game developers.
Developers who opt for alternative billing options will receive a 4% discount from the fees paid to Google, taking into account any additional fees that third parties may charge. Google typically takes a cut of up to 30% on in-app transactions and paid downloads.
This move by Google is in response to a Competition and Markets Authority (CMA) investigation dating back to 2022, where the authority highlighted concerns about Google and Apple’s dominance in the mobile ecosystem. Both companies were identified as sole in-app billing providers for their platforms, leading to anticompetitive scrutiny.
In 2023, Google proposed user choice billing as a resolution to the antitrust probe, which was met with a consultation by the CMA for feedback from developers. The probe was ultimately closed last year, with regulatory reforms such as the digital market competition bill being considered to regulate these tech giants in the mobile market.
To comply with regulatory pressure and promote competition, Google has already allowed third-party billing in other regions such as the U.S., India, Australia, Indonesia, Japan, and the European Economic Area (EEA), following similar commissions and charges as in the U.K.
