Google’s Grip on App Payments Set to Loosen After CMA Probe
Google has agreed to let app developers ditch its strict payment system following a Competition and Markets Authority (CMA) investigation into how it controls in-app purchases on Google Play.
End to Google Play Payment Monopoly?
The CMA is now consulting on Google’s offer to give developers freedom from the Google Play billing system. This move could shake up the market, allowing alternatives for processing in-app payments.
Currently, Google Play dominates Android app downloads, covering over 90%, and forces developers to use its own billing system for digital content purchases. The CMA’s recent market study into mobile ecosystems raised red flags that this control might be hiking prices and shrinking customer choice.
New Options: Developer-Only & User Choice Billing
Under the new plans, developers could choose a payment system of their own, dubbed ‘Developer-only Billing’ (DOB), or offer users a pick between Google Play’s system and a third-party option, called ‘User Choice Billing’ (UCB).
This would open the door for third-party payment firms to promote their services, sparking competition and innovation. Crucially, it lets developers connect more directly with customers — a big shift from the current setup.
Bargains, Better Deals, and More User Control
Breaking Google’s payment monopoly could see users enjoying new deals and special offers on apps, something currently banned under Google Play rules. This means potential savings and a fresh shopping experience for digital content like streaming films and TV shows.
The CMA is seeking feedback on Google’s commitments from developers and payment providers until 5pm on Friday 19 May 2023, before making a final call.
Ann Pope, Senior Director of Antitrust at the CMA, said:
“Google’s complete control over in-app payments raised concerns this unfairly restricted app developers – by forcing them to use Google Play’s billing system – putting distance between them and their customers and reducing competition, to the detriment of Google Play users.”
“While we’re pleased our investigation has resulted in Google offering to give in-app payment freedom to thousands of app developers, we need to make sure these commitments will work in practice – so we welcome all feedback, which we will carefully consider before making a final decision.”
