Google has modified Play Store policies in the EEA to meet Digital Markets Act requirements, introducing new fee structures for developers and external transactions amid antitrust scrutiny in UK.
In a move to address ongoing regulatory scrutiny from the European Union, Google has announced modifications to its Google Play Store terms.
These changes, effective in the European Economic Area, aim to comply with the Digital Markets Act by offering developers more options for payments and external transactions while maintaining user safety.
The Digital Markets Act, enforced since March 2024, targets major tech firms like Google to promote fair competition.
It designates such companies as gatekeepers and requires them to avoid favoring their own services, allow alternative payments, and permit developers to guide users to outside offers without barriers.
In March 2025, the European Commission issued preliminary findings against Google for violating these rules.
The accusations focused on restrictions that prevented app developers from directing users to cheaper alternatives outside the Play Store and imposing unfair fees on external transactions.
Google faces potential fines up to 10% of its global revenue if found non-compliant, building on past EU antitrust penalties exceeding €8 billion.
On August 19, 2025, Google updated its Play Store conditions for developers in the EEA, which includes the EU, Iceland, Liechtenstein, and Norway.
The revisions stem from discussions with the European Commission, developers, and experts, balancing flexibility with concerns over user exposure to harmful content.
Developers can now choose Google's billing, alternative systems, or a mix.
Options include User Choice Billing, where users select between Google or alternatives with a 4% fee cut, and the EEA Program for alternative-only billing with a 3% reduction.
Transactions must be reported, and user experience rules apply to prevent misleading or unsafe practices.
The External Offers Program allows easier promotion of outside deals and in-app links to external purchases.
Developers must alert users to potential security risks when leaving the app.
Google introduced a new fee model for external transactions:
Initial Acquisition Fee: 5% for auto-renewing subscriptions and 10% for other in-app offers, limited to two years.
Ongoing Services Fee: 7% for subscriptions and 17% for other offers; opt-out possible after two years with user approval.
These adjustments build on standard service fees of 15-30%, with reductions for alternatives. Compared to prior structures, the updates lower some initial fees and add opt-out flexibility.
| Fee Type | Pre-Update (General) | Post-Update (EEA External Offers) |
|---|---|---|
| Standard Service Fee | 15% (first $1M revenue) or 30% | Unchanged, but adjustable for alternatives (3-4% reduction) |
| Initial Acquisition Fee | Not specified (part of service fee) | 5% (subscriptions), 10% (other offers) – capped at 2 years |
| Ongoing Services Fee | Not applicable | 7% (subscriptions), 17% (other offers); opt-out after 2 years |
| Subscriptions | 15% | Lowered in external contexts |
Developers gain more freedom to avoid full reliance on Google's fees, potentially boosting direct earnings, especially for smaller firms through lower costs and opt-outs.
However, compliance like reporting and warnings adds complexity, and ongoing fees may still favor Google's ecosystem.
Users in the EEA could benefit from promotions of cheaper external options, leading to savings, but face risks like malware from unverified sites, which might degrade app experiences.
On a broader scale, these changes support DMA goals of increased competition in app distribution.
They may influence policies in other regions like the US or UK, helping Google avoid fines while protecting Play Store revenue.
The timeline includes DMA enactment in 2023-2024, March 2025 charges, and the August 2025 updates, with ongoing EU reviews.
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This adjustment by Google reflects a pattern seen in Big Tech's responses to global regulations, similar to Apple's changes under the DMA.
While the updates provide incremental developer relief, critics argue the fees remain high, potentially stifling true competition.
Past cases, such as Google's earlier EU fines, suggest enforcement will intensify.
Looking ahead, if the Commission deems these insufficient, further tweaks or penalties could follow by late 2025, possibly inspiring similar reforms worldwide amid rising antitrust actions.
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