It is very important for developers to stay up to date with the latest regulations and adjustments of large platforms. Yesterday, Google announced important details about how its app store, Google Play, will adapt to this situation. Digital Markets Act (DMA) Today in the European Union we have expanded the details with prices.
Remember, this law seeks to promote competition and provide more options for consumers and developers within the application ecosystem.
The DMA introduces a regulatory framework aimed at leveling the playing field in digital markets. In response, Google released his program external proposal, which allows developers to direct users to suggestions outside of the app. These changes are accompanied by fee structures that are a turning point for developers operating in: European Economic Area (EEA).
Fee Structure Description
Google’s pricing strategy consists of two main components: first of all, Initial Acquisition Fee, 10% for in-app purchases and 5% for subscriptions for the first two years. This cost reflects the value Google Play provides for initial user acquisition. The second component is Ongoing service fee, set at 17% for in-app purchases and 7% for subscriptions. This fee covers additional services such as parental controls, secure scanning, fraud protection, and ongoing app updates. Interestingly, developers can opt out of these services (and their fees) after two years, as long as the user consents.
Impact and Opportunity
These adjustments to Google’s policies not only meet regulatory demands, but also open new avenues for developers. This allows for greater flexibility and the possibility to explore alternative business models outside the closed Google Play ecosystem, while retaining the option to benefit from the value-added services that Google offers.
As someone who has been immersed in the world of technology for many years, I think this change is necessary and timely, but I don’t have enough data yet to form an opinion. It is true that it provides a more level playing field for developers and reflects an important adaptation to a more open and competitive digital marketplace. But to maximize your reach and profitability, you need to learn how to effectively navigate between these new options.
