App developers on Google Play store offered payment choices following CMA probe
The Competition and Markets Authority (CMA) is consulting on commitments offered by Google which would give app developers the freedom to break away from Google Play’s billing system and use alternatives to process in-app payments.
Google Play accounts for over 90% of native app downloads on Android devices and restrictions placed on app developers currently require them to use Google Play’s own billing system for in-app transactions involving digital content. Following the CMA’s market study into ‘mobile ecosystems’ and concerns raised that Google’s control over payment processing in Google Play is potentially leading to higher prices and reduced choice for Android users, a new investigation was launched into these in-app payment rules.
Under these new proposals app developers would be able to offer a different payment system of their choosing, known as ‘Developer-only Billing’ (DOB), or offer users a choice between an alternative payment system and Google Play’s billing system, known as ‘User Choice Billing’ (UCB). Third party payment providers would have the ability to market their services to app developers for processing transactions involving digital content – enabling greater innovation and competition for Google Play in-app payment services and allowing app developers to have a more direct relationship with their customers.
By breaking the link between app developers’ access to Google Play and Google’s payment system, the commitments could allow Google Play users to access new special offers and in-app deals that are not permitted under current Google Play rules, allowing them to potentially save money and receive a different user experience while accessing paid-for digital content (such as streaming films and TV shows).
Before reaching a final decision, the CMA is consulting to determine whether these commitments will be appropriate, particularly for app developers and third-party payment providers. The deadline for any feedback is 17h00 Friday 19 May 2023.
More information on the CMA’s investigation and how to take part in the consultation can be found via the case page.
Source: Competition and Markets Authority