Google has announced that it will introduce “customer-selected billing” in the UK, allowing developers on Google Play to use alternative payment systems instead of Google’s own. This change, effective March 29, will initially apply only to non-gaming app developers.
If developers choose to opt out of Google Play’s billing entirely, they can process payments through third-party services. Those who select an alternative billing option will receive a 4% reduction in the amount they pay Google, though this includes any fees that third-party providers may charge. Typically, Google takes up to 30% of in-app transactions and paid downloads.
A Response to Regulatory Pressure
Google’s move is a direct response to an investigation by the UK’s Competition and Markets Authority (CMA), which began in 2022. The CMA had conducted a year-long study into the mobile ecosystem, concluding that Google and Apple’s control over app store billing warranted regulatory scrutiny. The investigation focused on their dominance as the sole providers of in-app payment processing on their platforms.
To address these concerns, Google invited developers in 2023 to discuss user-choice billing as part of a settlement effort. This led the CMA to launch a consultation, seeking input from developers on Google’s proposal. Eventually, the CMA dropped its case against Google and Apple, opting instead to regulate their mobile business practices under its existing authority.
Expanding User-Choice Billing
In response to global regulatory pressure, Google has already introduced third-party billing in several markets, including the US, India, Australia, Indonesia, Japan, and the European Economic Area (EEA). The UK will follow the same pricing model as these regions.
Despite the shift, Google maintains that its built-in billing system remains popular among developers, notes NIX Solutions. In a blog post, the company stated that more than 90% of developers on its platform are “happy” or “very happy” with Google Play’s billing. However, it acknowledged that some developers prefer additional choices, which this new option aims to provide.
This development marks another step in Google’s ongoing efforts to comply with regulatory demands while maintaining its platform’s ecosystem. Yet we’ll keep you updated as more integrations become available.