Google revamps Play Store in Europe amid mounting EU pressure

Alphabet’s Google is rolling out significant changes to its Play Store in Europe as it seeks to address mounting regulatory scrutiny under the European Union’s Digital Markets Act (DMA). The updates, announced Tuesday, will make it easier for app developers to guide users to external platforms for purchases, a practice regulators say Google previously restricted.

The revisions center on Google’s External Offers Program, first launched in March 2024, which allows developers to lead users in the European Economic Area (EEA) outside of their apps to access offers and alternative payment options. Under the latest changes, developers will also be able to promote downloads of their own external apps and choose from revised service tiers.

Google said the new framework introduces a tiered fee structure. “Initial acquisition fees” charged on developers will be reduced from 10% to 3%, though ongoing service charges will remain in place to cover what Google calls “operational costs.” The company emphasized that developers must still meet eligibility standards, enroll in the program, and comply with Google Play’s payments policy.

Despite agreeing to these concessions, Google has expressed misgivings about the risks. “While we still have concerns that these changes could expose Android users to harmful content and make the app experience worse, we’re 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 for EMEA.

The move follows formal charges filed in March accusing Google of breaching the DMA on two fronts: allegedly prioritizing its own vertical services such as Google Flights and Shopping in search results, and imposing restrictions on developers’ ability to direct consumers to rival offers. Regulators also argued that Google’s fees for customer acquisition through Play exceeded what was justifiable.

The stakes for Google are high. Under the DMA, violations can draw fines of up to 10% of a company’s global annual revenue. Google has already faced more than €8 billion ($9.3 billion) in EU antitrust fines under older rules. By contrast, Apple and Meta have so far incurred penalties of €500 million and €200 million, respectively, under the new framework.

The Play Store changes will apply across 30 European countries starting this fall. They echo similar reforms Apple has been forced to implement, although Apple has simultaneously pursued a legal challenge to the EU’s clampdown.