The Google Play Store revision occurs as the EU continues to assert its authority under the Digital Markets Act. Credit: winnond/Shutterstock.com.
Alphabet ‘s Google has unveiled a series of modifications to its Play Store in an effort to avert future fines from the European Union (EU), reported Bloomberg.
The initiative follows a cautionary note from regulatory authorities.
The changes aim to facilitate third-party developers in guiding customers away from the Android ecosystem for app purchases, a concern raised by EU regulators in March.
This overhaul, which will be implemented across 30 European nations, will permit applications to redirect users to the web for transactions outside of the Play Store.
Alongside this transition, a new fee structure has been framed to help cover Google’s operational expenses.
While the “initial acquisition fees” for developers will decrease from 10% to 3% of transaction amounts, the company has indicated that a tiered fee system will be introduced for software developers.
However, Google has warned that directing users away from the Play Store’s secure environment could pose “serious security threats”.
Following discussions with the European Commission, Google competition counsel Clare Kelly said: “While we still have concerns that these changes could expose Android users to harmful content and make the app experience worse, we’re updating our External Offers Program for the EU with revised fees and more options for Android developers.”
This Play Store revision occurs as the EU continues to assert its authority under the Digital Markets Act.
The act aims to eliminate questionable practices before they compromise competition, outlining specific guidelines for Silicon Valley firms and permitting fines for infractions of up to 10% of a company’s global annual revenue.
Previously, the EU has compelled Apple to modify its App Store, changes that the company has enacted while simultaneously contesting the regulatory actions in court.
So far, only Apple and Meta Platforms have incurred fines under the Digital Markets Act, amounting to €500m ($583m) and €200m, respectively.
These penalties are minor compared to the more than €8bn in fines Google has faced in recent years under the EU’s standard competition regulations for alleged monopolistic practices.
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