In a move to comply with Europe’s new Digital Markets Act (DMA), Google has shared more details about the fees that will accompany its External Offers program. This program allows Play Store developers to lead their users in the EEA outside their app, including promoting offers.

Background on the Digital Markets Act

The DMA is a regulation aimed at increasing competition across the app store ecosystem. While Google yesterday pointed out ways it already complied with the DMA, such as allowing sideloading of apps, it hadn’t shared specifics about the fees that would apply to developers. That time has now come.

Fees for External Offers Program

Google will charge two fees for transactions under its External Offers program: an initial acquisition fee and an ongoing services fee.

Initial Acquisition Fee

  • 10% for in-app purchases or
  • 5% for subscriptions for two years

This fee represents the value that Play provided in facilitating the initial user acquisition through the Play Store.

Ongoing Services Fee

  • 17% for in-app purchases or
  • 7% for subscriptions

This reflects the broader value Play provides users and developers, including ongoing services such as parental controls, security scanning, fraud prevention, and continuous app updates.

Developer Options

Developers can opt out of the ongoing services and corresponding fees after two years. Users who initially installed the app will have access to services like parental controls, security scanning, fraud prevention, and continuous app updates. Opting out requires user consent.

Although Google allows developers to terminate this fee, those ongoing services will no longer apply either. Developers will still be responsible for reporting transactions involving users who continue to receive Play Store services.

Program Details

The External Offers program is opt-in only. It applies to both games and apps alike. Developers can opt-in only some of their apps. They must register for the program as a business, not an individual. Developers can continue to use Google Play’s billing system while participating in the external offers program.

Alternative Billing Systems

Separately from the External Offers program, Google has launched two other programs allowing alternative billing systems for in-app purchases. These are expanding this week to all developers whose apps reach EEA users.

Q&A

Google has addressed a series of general questions developers may have about the program:

  • Is the program opt-in or opt-out? The program is opt-in only.
  • Does it apply to games and apps alike? Yes, it applies to both.
  • Can I opt-in only some of my apps? Yes, you can opt-in only some of your apps.

Developer Registration

Developers must register for the program as a business, not an individual. This will be necessary for them to participate in the external offers program.

Conclusion

Google’s External Offers program and related fees are now clear. The company is taking a similar approach to Apple, which reduced its App Store commissions in the EU but implemented a new Core Technology Fee that required developers to pay €0.50 for each first annual install per year over a 1 million threshold for apps distributed outside the App Store.

Google’s fee structure reflects the value provided by Android and Play, including ongoing services like parental controls, security scanning, fraud prevention, and continuous app updates.

Related News