Yesterday, Google outlined changes to comply with the EU’s Digital Markets Act (DMA), which comes into effect today. But one important detail missing was whether developers would be charged for directing users outside of the Play Store to sideload their apps, and if so, how much.
Now Google says it will actually start charging developers even if they don’t use the Play Store, just like Apple did with the App Store. According to new details in the Play Console help section, the company is charging two new fees.
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The initial acquisition fee is 10% for in-app purchases and 5% for a two-year subscription. This demonstrates the value Play provides to drive early user acquisition.
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There is an ongoing service fee of 17% for in-app purchases and 7% for subscriptions. This includes ongoing Play services such as parental controls, security, fraud prevention, and app updates.
Developers can opt out of ongoing fees after two years if users consent, but ongoing Play Services will no longer apply. Google said, “Because users purchased apps through Play with the expectation of services such as parental controls, security checks, fraud prevention, and continuous app updates, user consent is also required to discontinue service.”
Google has included the following chart to show how the fees apply to the hypothetical “Fantastiq app.”
With this, Google is taking a similar approach to Apple, which has introduced new fees while reducing App Store fees. That said, Apple has imposed a new 3% “payment processing” fee on transactions that pass through its stores. And the new “core technology fee” will charge a flat fee of €0.50 for every app download, regardless of whether it was downloaded from the App Store or a third-party website, after the first million installs.
Google justifies its fees by touting the value it brings to the Android ecosystem. “Play’s fees reflect the value we bring to Android and Play, including supporting our investments in Android and Google Play, distributing Android for free, and providing continually growing services that help developers build successful businesses. “At the same time, it’s a suite of tools and services that help keep our platform safe for billions of users around the world.”
Epic CEO Tim Sweeney criticized Google’s post about DMA compliance yesterday even before the new fees were revealed. “Google has announced a nefarious compliance plan for European DMA laws… Their anti-illegal steering policy looks set to be replaced by a new Google tax on web transactions. We’ll see how he and other developers react to this. You will soon find out: new fees.