Google will allow Android developers to bypass its payment system on the UK Play Store. The decision, prompted by an investigation by the UK’s Competition and Markets Authority, comes almost a year after a similar move in the European Union, where the digital giant had to comply with the new Digital Market Act.
“Google Play has powered the launch of millions of apps, helping developers build businesses that support nearly 250,000 jobs in the UK alone. Today we are announcing a series of potential commitments around our payment system, to reach an agreement with the Autorité des Marchés et de la Concurrence,” Oliver Bethell, the company’s legal director, said in a press release broadcast by The Guardian.
A double-edged concession
However, the Authority is wary of Google’s statements. If the announcement has something to appease the investigation, it does not fully satisfy the institution. In fact, Google has indicated, as is the case in the European Union, to continue taxing transactions carried out in third-party applications.
The rate for this will be reduced by 3 points, and therefore will go from 30% to 27% for applications that generate more than a million dollars in annual revenue, and from 15% to 12% for smaller developers – It should be noted that the latter represent practically all those currently present on the platform.
“While we’re pleased that our research has resulted in Google allowing thousands of developers to use the payment systems of their choice, we need to make sure these commitments work in practice. So we welcome any feedback from experience, that we will take into account.” before we make our final decision,” said Ann Pop, director of the UK’s Competition and Markets Authority’s anti-competition branch.
Source: BFM TV
