Google announced a new initiative today, introducing user choice billing in the United Kingdom. This policy will allow developers on Google Play to utilize alternative billing systems instead of Google’s default system. The option will become available to non-game developers starting March 29.
Developers choosing this alternative billing method will not be able to completely replace Google Play’s billing system, rather it will be provided as an additional option. Those opting for this system will receive a 4% fee discount, compensating for potential charges from third-party services. Normally, Google takes a cut of up to 30% on in-app purchases and downloads.
In their blog post, Google indicated that over 90% of developers on their platform are satisfied or very satisfied with Google Play’s traditional billing system. Despite this, they acknowledged that some developers might prefer more flexibility in payment processing. Thus, this initiative enables developers to offer an additional billing option alongside Google Play’s own system, giving users a choice at checkout.
This development is part of Google’s response to a past investigation by the Competition and Markets Authority (CMA), initiated in 2022. The investigation focused on the influence of Google and Apple in the mobile ecosystem, scrutinizing their status as sole in-app billing providers for their platforms and highlighting their app stores as potential areas of concern in terms of anticompetitive practices.
In 2023, Google proposed user choice billing as part of an effort to resolve the antitrust investigation. Subsequently, the CMA launched a consultation inviting feedback from developers on Google’s proposal.
The CMA eventually concluded the investigation against Google and Apple, planning to address app store concerns through future regulatory reforms, such as the digital market competition bill. Meanwhile, Google has gradually introduced third-party billing in other markets in response to regulatory demands for increased competition in app stores.
Currently, countries where Google offers user choice billing include the United States, India, Australia, Indonesia, Japan, and the European Economic Area (EEA), all following similar commission structures as the U.K.
