Developers will now be able to use alternative payment systems, but will still owe the company a hefty tax. A concession that does not satisfy the British regulator.
Google will allow Android developers to bypass its payment system on the UK Play Store. The decision, prompted by an investigation by the UK Markets and Competition Authority, comes almost a year after a similar move in the European Union, where the digital giant had to comply with the new Digital Market Act.
“Google Play has powered the launch of millions of apps, helping developers build businesses that support almost 250,000 jobs in the UK alone. Today we are announcing a series of potential commitments related to our payment system , to reach an agreement with the Autorité des Marchés et de la Concurrence”, indicated Oliver Bethell, legal director of the company in a press release relayed by The Guardian.
A double-edged concession
However, the Authority remains wary of Google’s statements. If the announcement has something to appease the investigation, it does not entirely satisfy the institution. Indeed, Google has indicated, as is the case in the European Union, to continue to levy a tax on transactions carried out on third-party applications.
The rate of this will be reduced by 3 points, and will therefore go from 30% to 27% for applications that generate more than one million dollars in annual revenue, and from 15% to 12% for the smallest developers – it should be noted that the latter represent almost all of those currently present on the platform.
“While we are pleased that our investigation has resulted in Google allowing thousands of developers to use the payment systems of their choice, we need to ensure that these commitments work in practice. We therefore welcome any feedback from experience, which we will take into consideration before making our final decision,” said Ann Pop, director of the anti-competition branch of the UK Markets and Competition Authority.
