Google today announced that it will be offering user choice billing in the UK, offering the ability for Google Play developers to use other billing options rather than Google's own system. This change began on March 29th and is initially only available to non-game developers.
If the developer chooses it, it cannot completely replace the Google Play billing. Instead, third-party routes are provided as an option.
Developers who choose to use the alternative billing option will receive a 4% discount on the fees they pay to Google (considering the fees that third parties will also charge). Google typically receives up to 30% savings on in-app transactions and paid downloads.
In a blog post announcing the changes, Google claimed that over 90% of developers on the platform are either “satisfied” or “very satisfied” with Google Play's native billing. However, “We recognize that some developers may want to choose more about how they process payments. With this launch, developers can provide additional billing systems along with Google Play's billing system, allowing users to choose the options they want to use at checkout.”
The backstory is a bit more rosy than Google being a good person.
Google's move is actually a much-anticipated response to the Competition and Markets Bureau (CMA) investigation dating back to 2022.
At the time, Competitive Watchdog published a report based on a year-long research on the mobile ecosystem, noting that the power of both Google and Apple in the market could be subject to regulatory scrutiny. Corporate app stores were the only in-app billing providers on their respective platforms, but were particularly focused when investigating the anti-competitive duopoly status of Google and Apple.
That was just the beginning. In 2023, Google proposed that it could provide developers with user-selection requests to resolve antitrust laws. In response, the CMA began a consultation and invited developers to provide feedback on Google's proposals.
Last year, the CMA ultimately shut down its investigations against Google and Apple, noting that it plans to use regulatory reforms such as the Digital Market Competition Bill to regulate these companies in the mobile market.
In the meantime, Google has allowed claims from third parties elsewhere in response to regulatory pressures to open the App Store to more competition.
Countries that Google already offers user-selection billing include the US, Australia, Indonesia, Japan and the European Economic Area (EEA).