Google is revealing the details of the fees that will accompany its efforts to comply with the Digital Markets Act (DMA) in Europe. This new regulation aims to increase competitiveness within the app store ecosystem. While yesterday, Google mentioned that it was already in line with the DMA, including allowing app sideloading, specifics about the fees were not yet disclosed. However, as promised, Google is now sharing further information.
There will be two fees associated with the External offers program, which was announced yesterday. This program enables Play Store developers to direct their European Economic Area (EEA) users outside of their app to promote offers.
Similar to Apple’s approach, Google has implemented fees to comply with the DMA. These include an initial acquisition fee and an ongoing service fee. The initial acquisition fee is 10% for in-app purchases and 5% for subscriptions for two years. This fee reflects the value that Play provides in facilitating the initial user acquisition through the Play Store.
The ongoing service fee is 17% for in-app purchases and 7% for subscriptions. This fee accounts for the broader value that Play offers users and developers, such as parental controls, security scanning, fraud prevention, and continuous app updates.
Notably, developers can choose to opt-out of the ongoing service fee after two years with user consent. However, opting out also means that the user will no longer have access to these services. Developers must still report transactions for these users who continue to receive Play Store services.
Google also provided more examples of how this fee structure would work and answered general questions about the program, including: whether it is opt-in or opt-out (opt-in only), if it applies to games and apps alike (yes), if developers can choose to opt-in for only some of their apps (yes), and other technical integration details. It is worth mentioning that developers must register for the program as a business, not as an individual. The company also clarified that developers can still use Google Play’s billing system while participating in the External Offers program.
In addition to the External Offers program, Google has launched two other programs this week that allow alternative billing systems for in-app purchases. These programs are now available to all developers whose apps reach EEA users.
In conclusion, Google is taking measures to comply with the DMA in Europe, including implementing fees for the External Offers program. While this may have a financial impact on developers, Google emphasizes that these fees reflect the value that Play provides and supports its continued investments in Android and Google Play.
