Google Updates In-App Billing Rules to Allow Rival Payment Services

The policy changes will ensure Google is complying with new EU legislation.

Katie Collins Senior European Correspondent

Katie a UK-based news reporter and features writer. Officially, she is CNET's European correspondent, covering tech policy and Big Tech in the EU and UK. Unofficially, she serves as CNET's Taylor Swift correspondent. You can also find her writing about tech for good, ethics and human rights, the climate crisis, robots, travel and digital culture. She was once described a "living synth" by London's Evening Standard for having a microchip injected into her hand.

See full bio

Katie Collins

July 19, 2022 7:24 a.m. PT

2 min read

Google will allow app developers to use rival payment systems.

Sarah Tew/CNET

Google is updating its rules to allow app developers to use rival payments systems in place of the company's homegrown Google Play billing system in Europe. The change, announced Tuesday in a blog post, will help Google ensure it's abiding by incoming EU tech laws, which will demand that tech giants operate on a fair and level playing field.

Whereas in the past, app developers were bound to using Google Play's billing system, now they can use an alternative system in the EU only. Developers choosing this option will see a 3% reduction in service fees paid to Google, which the company estimates will ddrop the majority of developer fees down to around 12%.

The rules will only apply to non-gaming apps for now, but Google expects to expand the policy to include gaming apps.

Google's policy change has been instigated by the introduction of a package of new digital laws that will govern how tech platforms big and small operate in Europe. It will likely be the first of several changes made by tech giants to ensure their houses are in order before the laws come into effect later this year.

The package consists of two pieces of legislation: the Digital Services Act, which protects the rights of internet users, and the Digital Markets Act, which is designed to create fair and open competition in the digital realm. Together the pair of laws propose a set of new rules for all digital services, including social media and online marketplaces. Large tech companies failing to comply with them could be charged up to 10% of their annual global revenue.

"Although the DMA does not take effect for some time, we are launching this program now to allow us to work closely with our developer partners and ensure our compliance plans serve the needs of our shared users and the broader ecosystem," said Estelle Werth, Google's director for EU government affairs and public policy, in the company's blog post. "As always, we'll continue to listen to developers' feedback and continue to invest to help them thrive on Google Play."