Google has rolled out a significant change to its Play Store policies in the United Kingdom, giving app developers more flexibility in how they process payments. This move comes after years of regulatory scrutiny and marks a shift in Google’s approach to app store economics.
What’s Changing for UK Developers
Starting March 29, 2025, non-gaming app developers on the Google Play Store in the UK can now offer alternative billing systems alongside Google’s own payment processing. This means users will have a choice at checkout - they can pay through Google Play’s billing or through another system selected by the app developer.
Some key points about this new policy:
- It currently only applies to non-gaming apps
- Developers must still offer Google Play billing as an option
- Alternative billing can only be offered within the app itself
- Google will reduce its service fee by 4% for transactions using alternative billing
The Road to User Choice Billing
This change didn’t happen overnight. Let’s look at the events that led to this decision:
Regulatory Pressure
In 2022, the UK’s Competition and Markets Authority (CMA) launched an investigation into mobile ecosystems. Their findings suggested that the tight control Apple and Google exerted over their respective app stores was potentially anti-competitive.
Google’s Response
Rather than face potential regulatory action, Google began working on a compromise. In 2023, the company proposed a user choice billing system to the CMA as a way to address concerns about competition.
Global Rollout
The UK isn’t the first market to see this change. Google has been gradually introducing user choice billing in various countries, including:
- United States
- Australia
- Brazil
- European Economic Area (EEA) countries
- Japan
- India
- Indonesia
- South Africa
What This Means for Developers
For app creators in the UK, this change brings both opportunities and new responsibilities:
Potential Benefits
- More control over the user experience
- Possibility of reduced fees (though this depends on the alternative billing provider)
- Flexibility to offer promotions or bundles outside of Google’s ecosystem
New Responsibilities
- Developers must provide customer support for users of alternative billing systems
- They need to implement a process for disputing unauthorized transactions
- Ensuring compliance with local laws and regulations around payment processing
The User Perspective
For consumers, this change might not be immediately noticeable, but it could lead to some interesting developments:
- More payment options within apps
- Potential for app-specific discounts or promotions
- A need to be more vigilant about which payment system they’re using
Google’s Balancing Act
This move represents a delicate balance for Google. On one hand, they’re addressing regulatory concerns and potentially avoiding more severe action. On the other, they’re still maintaining a level of control and continuing to earn revenue from app sales.
Myrto Tagara, Competition Counsel at Google, stated: “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 recognise that some developers may want more choice in how they process payments.”
Looking Ahead
The introduction of user choice billing in the UK is likely just one step in an evolving app store landscape. Here are some things to watch for:
- How quickly gaming apps will be included in this policy
- Whether Apple will make similar concessions in its App Store
- If this change leads to noticeable shifts in app pricing or availability
As the digital marketplace continues to evolve, both developers and users will need to stay informed about their options and rights when it comes to in-app purchases.
The move to user choice billing in the UK represents a significant shift in how app stores operate. While it’s too early to predict all the consequences, it’s clear that the relationship between platforms, developers, and users is becoming increasingly complex.