Google eases Play Store rules under EU antitrust pressure
What's the story
Google has announced plans to make it easier for app developers to direct customers toward platforms other than its own. The move comes after the European Union (EU) competition watchdog accused the tech giant of violating EU regulations. The allegations stem from whether Google restricts app developers from informing users about deals outside the Play Store, and whether it favors its own vertical search services like Google Flights.
Regulatory response
Charges under EU's Digital Markets Act
In March, Google was slapped with two charges of violating the EU's Digital Markets Act (DMA), a law designed to curb Big Tech's influence. The company has been accused of technically preventing app developers from freely directing consumers to other platforms for better deals. It has also been alleged that a service fee charged by Google for helping an app developer acquire new customers through Google Play is unjustified.
Policy update
Google updates terms in response to allegations
In response to the allegations, Google has said it will be updating certain terms. Clare Kelly, EMEA Senior Competition Counsel at Google, said in a blog post that "while we still have concerns that these changes could expose Android users to harmful content and make the app experience worse," they are revising their External Offers Program for the EU. The revision includes updated fees and more options for Android developers after discussions with the European Commission on DMA.
Financial implications
Potential fines for Google
Google, which has already been fined over €8 billion ($9.3 billion) by the EU for different antitrust violations, could face fines of up to 10% of its global annual sales if found guilty of violating the DMA. The new policy changes are part of Google's effort to comply with EU regulations and avoid further penalties.