Google has announced the extension of user choice billing to app developers in the UK, following the initiation of an investigation by the Competition and Markets Authority (CMA) into its in-app purchasing billing arrangements. The move provides developers with the option to offer alternative payment systems alongside or instead of Google Play’s billing system. It is intended to provide developers and users with more choice and flexibility.
Under the new system, developers are permitted to include additional billing choices within their apps, making it possible for users to select their preferred method of payment during checkout. Developers who offer both Google Play billing and alternative systems will receive a 4% reduction in service fees, while those who do not offer Google Play billing at all will receive a 3% reduction. The fees are meant to support Google’s investment in Android and Play Store infrastructure.
The phased rollout prioritizes the non-games applications initially, and the games applications are expected to have the system in place by October 2023. The developers are expected to follow user protection principles and meet standards such as the Payment Card Industry Data Security Standard (PCI DSS) when handling card information. They are also expected to provide customer support for transactions carried out using alternative billing systems.
The CMA’s investigation, launched in June 2022, scrutinized Google’s control over payment systems for Android in-app purchases. The proposed remedies are part of Google’s commitments to address concerns raised during the investigation. The CMA is requesting public consultation until May 19, 2023, to enable the industry to comment before deciding whether the commitments should be made legally binding.
This follows the same investigations into Google’s billing practices elsewhere in the world, including South Korea, India, and the European Economic Area (EEA). Google reaffirmed its commitment to platform openness and supporting developers while maintaining service fees that reflect the value its ecosystem provides. The introduction of user choice billing represents a significant shift in how app developers can process payments on Android devices in the UK.
