Google Play & DMA - New Developer Fees

March 11th, 2024

Google Play & DMA - New Developer Fees
David Bell

by David Bell

CEO at Gummicube, Inc.

The hot topic for app developers and publishers in the last few weeks has been the live push of the European Union’s new Digital Markets Act (DMA). The legislation aims to promote new avenues for developers to distribute apps, charge for in-app purchases, and create a fairer marketplace experience that allows for increased competition.

While the changes coming to the App Store have been getting most of the buzz, Google Play will also see changes coming to its platform. In this ASO Weekly, we’ll briefly cover the new developer fees being introduced to Google Play in response to the laws set in place.

Updated Google Play Fees 2024

Prior to the changes, Google’s fee consisted of 15% for most of the developers on the platform. According to Google, while not every developer is charged the same, the vast majority of publishers are charged this rate.

current google play structure
Source: Google

Because of the EU’s regulations, however, a new fee structure will be applied to the region for developers that opt to incorporate third-party payment processing instead of using Google Play directly. The two additional fees added to its External offers program apply to developers who will lead users outside of their app to complete purchases.

The two fees in question are the following:

  • Initial acquisition fee: 10% for in-app purchases or 5% for subscriptions for two years.
  • Ongoing services fee: 17% for in-app purchases or 7% for subscriptions.

Developers will be able to opt out of the ongoing services fee but with a catch. User consent is necessary to be able to forgo the fees. If accepted, developers and users will be forfeiting their right to use Google Play-specific services like parental controls, security scanning, fraud prevention, and continuous app updates.

Google Play DMA Evolution

The fees, permissions, and ongoing effects of the new EU DMA regulations will gradually be seen over time. While still early, developers, users, and even Google will undoubtedly note the changes as a result of the new ecosystems that will begin to appear. Time will tell how the future of app stores will be shaped in the European Union and how ASO strategies can change as a result.

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