Google (a subsidiary of Alphabet) has just announced that it will change some terms on Google Play, allowing application developers to make it easier to point customers to outside payment channels and incentives, after facing great pressure from the European Union (EU) competition authority.
This move comes as Google has been repeatedly scrutinized by the EU for potential violations of the Digital Market Act (DMA), a new set of regulations to control the power of technology giants.
In March 2024, Google was accused twice of obstructing developers from notifying users about offers outside Google Play, and was suspected of prioritizing its own search services such as Google Flights.
According to the European Commission, Google has technically limited developers' freedoms by preventing them from directing users to other channels at better prices. At the same time, the service fee that Google imposes for reaching customers via Google Play is considered "excessive".
In a blog post, a Google representative said that the new terms were made after discussions with the European Commission, developers and independent experts.
While we are concerned that these changes could put Android users at increased risk of unsafe content, Google is still updating its external incentive with adjustment fees and more options for developers in the EU, Clare Kelly, senior competition lawyer in EMEA ( Europe, Middle East and Africa).
Google has long been the focus of EU antitrust investigations, with total fines exceeding 8 billion euros ($9.3 billion). If it continues to be identified as violating DMA, the company could face a huge fine of up to 10% of global annual revenue.
Experts say this change is not only Google's effort to avoid the risk of being fined, but also reflects the growing pressure from the EU to control globally influential technology platforms.
