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Google Expands User Choice Billing to the UK Amid Antitrust Scrutiny

In a noteworthy development for app developers, Google recently announced that it will be implementing user choice billing in the United Kingdom, following an investigation by the Competition and Markets Authority (CMA) conducted in 2022. This initiative will allow Android developers in the UK to offer alternative payment methods for in-app purchases, a move that reflects growing regulatory scrutiny of major tech companies.

Starting from March 29, the UK will become the latest country to experience this change, which will initially apply to non-gaming applications, consistent with Google’s rollout approach in other markets. This option has already been rolled out in several regions, including the United States, Japan, Brazil, Australia, Indonesia, South Africa, and across countries in the European Economic Area (EEA).

Developers who participate in this program will have the ability to offer alternate payment options in addition to the existing Google Play billing system, rather than as a complete replacement. As part of this new arrangement, they will benefit from a 4% reduction in the service fees charged by Google.

This strategic shift comes in direct response to the regulatory environment in the UK, where the CMA’s antitrust investigation has highlighted concerns regarding the dominance of Google in the app market. The introduction of user choice billing serves as a concession to address these regulatory challenges.

In its announcement, Google acknowledged the impact of the CMA’s inquiry on its decision. However, the company also emphasized that the introduction of this feature is a way to cater to developer preferences. “While over 90% of our developers are ‘satisfied’ or ‘very satisfied’ with Google Play’s billing, which provides a secure way for people to buy subscriptions and digital goods in apps, we recognize that some developers may want more choice in how they process payments,” noted Myrto Tagara, Google’s Competition Counsel, in a blog post. Tagara wrote.

This move not only showcases Google’s willingness to adapt in the face of regulatory pressure but also highlights an evolving ecosystem for app developers seeking flexibility in their payment processing methods.

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