Google has unveiled the details of the fees that will be associated with its plan to comply with Europe’s Digital Markets Act (DMA). The DMA aims to foster competition within the app store ecosystem. While Google had previously highlighted its compliance efforts, such as enabling app sideloading, it had not disclosed the specific fees for developers. However, the company has now revealed the details.
Key Takeaway
Google has announced the introduction of fees for its External Offers program as part of its compliance with Europe’s Digital Markets Act. These fees, including an initial acquisition fee and an ongoing services fee, aim to reflect the value provided by Play and support the company’s continued investments across Android and Google Play.
External Offers Program Fees
Google has introduced the External Offers program, which enables Play Store developers to direct their users in the European Economic Area (EEA) outside their app to promote offers. As part of this program, two fees will be implemented, akin to Apple’s approach following the DMA.
- An initial acquisition fee: 10% for in-app purchases or 5% for subscriptions over 2 years, representing the value provided by Play in facilitating initial user acquisition.
- An ongoing services fee: 17% for in-app purchases or 7% for subscriptions, reflecting the broader value Play offers, including parental controls, security scanning, fraud prevention, and continuous app updates.
Opting Out and User Consent
Developers have the option to opt out of the ongoing services and corresponding fees after 2 years, provided the user agrees. However, opting out means that the mentioned ongoing services will no longer apply. Developers are still required to report transactions involving users receiving Play Store services.
Additional Programs and Integration Details
Google has also launched two other programs to allow alternative billing systems for in-app purchases, expanding them to all developers reaching EEA users. The company has provided examples of the fee structure in action and addressed common developer queries, clarifying that the program is opt-in, applies to both games and apps, and allows developers to opt-in only some of their apps. Furthermore, developers must register for the program as a business entity and can continue to use Google Play’s billing system while participating in the external offers program.
