Google has recently presented a groundbreaking proposal aimed at granting Android developers the freedom to utilize alternative billing systems. This progressive initiative comes as a response to the enforcement action conducted by the UK’s Competition and Markets Authority (CMA) against Google last year. The CMA’s focus was primarily on the conditions set for in-app payments, which prompted Google to introduce this proposal with the objective of providing developers with more flexibility in their choice of billing systems. Ultimately, the proposal seeks to foster competition and sever the ties between access to Google Play and proprietary billing systems.
Exploring the Options: Developer-Only Billing and User Choice Billing
Google’s proposal offers two distinct options for developers: Developer-only Billing (DOB) and User Choice Billing (UCB). DOB permits app developers to utilize a billing system of their preference, or alternatively, opt for no billing system at all. On the other hand, UCB empowers users by allowing them to select either an alternative billing method or the existing Google Play billing (GPB) system.
Fee Reduction as an Incentive
As part of its proposal to address the concerns raised by the CMA, Google has put forth a compelling offer. It proposes a notable four percent reduction in the service fee charged to developers for in-app digital sales if they provide users with the option to choose an alternative billing method. Moreover, developers who choose not to employ the Google Play billing (GPB) system would still receive a three percent reduction in the service fee. This fee reduction serves as a concrete incentive for developers to consider embracing alternative billing methods.
Phased Implementation of Proposed Commitments
In addition to the innovative options and fee reduction, Google has requested the opportunity to implement the proposed commitments in phases. The initial phase would focus on non-gaming app developers, with the service becoming available to them without delay. Subsequently, Google intends to extend these benefits to gaming app developers no later than October 2023, ensuring that all developers can take advantage of the proposed changes within a reasonable timeframe.
CMA’s Call for Feedback
The Competition and Markets Authority has invited developers and other stakeholders to provide their input and feedback on Google’s proposal by May 19, 2023. By considering the responses received, the CMA will make an informed decision on whether to accept the proposed commitments and subsequently bring a resolution to the case. It is worth noting that the CMA has provisionally deemed the proposed commitments appropriate for addressing the competition concerns stemming from the investigated conduct.
Response from the Coalition for App Fairness
The Coalition for App Fairness, represented by its Executive Director Rick Vanmeter, has shared its perspective on Google’s proposal. Vanmeter expressed his opinion that Google’s initiative to allow third-party payment options is merely a redistribution of fees. He believes that this proposal enables Google to continue profiting from services it does not even provide. According to Vanmeter, this solution falls short of fostering meaningful competition and is ultimately disadvantageous to both developers and consumers. He further reassured that the Coalition for App Fairness will remain engaged with the CMA in its pursuit of bringing true competition to the mobile app ecosystem.
Conclusion
Google’s proposal to permit Android developers to leverage alternative billing systems emerges as a direct response to the CMA’s enforcement action against the company. By presenting two options, DOB and UCB, along with a fee reduction for developers who adopt alternative billing methods, Google aims to address the competition concerns raised by the CMA. While some have criticized the proposal for its perceived inadequacy in promoting genuine competition, the CMA has tentatively considered the proposed commitments as appropriate measures to address the concerns identified during the investigation.
