As part of complying with the European Union’s Digital Markets Act (DMA), Google Play is getting an opt-in “external offers” program for Android apps and games across phones, tablets, Wear OS, ChromeOS, and Android TV.
External offers is how developers of Google Play-distributed applications “lead users in the European Economic Area (EEA) outside the app, including to promote offers for in-app digital features and services.”
This includes Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden, though “developers from other regions can enroll in the program to target users in the EEA outside of the Play app.”
There’s a list of requirements that developers have to abide by, while there’s a new fee structure in place.
There is an Initial acquisition fee of “5% for auto-renewing subscriptions and 10% for other offers of in-app digital features and services” during the first two years. This is meant to reflect the “value [Google] provided in facilitating the initial acquisition of the user through Play.”
Then there is the Ongoing services fee for using Google Play services: “7% for auto-renewing subscriptions and 17% for other offers of in-app digital features and services.” Apps can stop using Play services after two years:
After the initial two-year acquisition period, a developer may choose to discontinue Play’s ongoing services for a particular app. Since users acquired the app through Play with the expectation of services such as parental controls, security scanning, fraud prevention, and continuous app updates, discontinuation of services requires user consent as well. Subsequently, ongoing services and associated fees will no longer apply to these users. Developers are still responsible for reporting transactions involving users who choose to continue receiving ongoing services from Play.
Google explains the fees as such:
Play’s fees support our investment in Android and Google Play and reflect the value provided by Android and Play, including enabling us to distribute Android for free and provide the continuously growing suite of tools and services that help developers build successful businesses, all while keeping our platforms safe and secure for billions of users worldwide.
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Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
