Google outlines Play Store changes to avoid EU fines

Google updates Play Store policies in Europe, allowing external payments while adjusting developer fees.

Google is preparing to make significant changes to the Play Store in Europe as it seeks to avoid future regulatory penalties under the European Union’s Digital Markets Act (DMA). The move follows a warning issued in March, when EU regulators accused the company of restricting competition by preventing developers from directing users towards alternative payment methods outside the Android ecosystem.

According to Bloomberg, the proposed adjustments will allow app makers to guide customers away from the Play Store to complete transactions on the web. This new policy is expected to take effect across 30 European countries. For the first time, developers will be able to integrate direct links in their apps that take users to external sites for purchases.

While this marks a major shift in Google’s approach, the company is not giving up its revenue share entirely. Instead, it is introducing a revised fee structure. Under the new framework, developers will see the “initial acquisition fee” cut from 10 percent to 3 percent of transaction value. Beyond this reduction, a tiered system of charges will continue to apply, reflecting Google’s operational and security costs.

The company has voiced concerns that relaxing the rules could expose users to security risks. “While we still have concerns that these changes could expose Android users to harmful content and make the app experience worse, we are updating our External Offers Program for the EU with revised fees and more options for Android developers,” said Clare Kelly, Google’s senior competition counsel, in a statement following discussions with the European Commission.

Security remains a central argument for Google, which has consistently defended the Play Store’s role as a “safe environment” for payments. However, regulators in Brussels argue that the current restrictions give the company an unfair advantage over rivals, limiting consumer choice and raising costs for developers.

The shift by Google comes at a time when tech giants are under increasing pressure to comply with the DMA. Apple introduced similar measures earlier this year but has simultaneously challenged the new rules in court. Both Apple and Meta have already faced fines under the regulation, with penalties of €500 million ($583 million) and €200 million, respectively.

By revising its Play Store policies now, Google hopes to avoid becoming the next target of EU enforcement. The changes may also reshape the competitive landscape for digital payments and app distribution across Europe, potentially offering developers more flexibility while testing the balance between openness and user safety