Google unveils fees for its DMA compliance strategy in Europe, including an Initial Acquisition Fee and Ongoing Services Fee for Play Store developers

Today, Google revealed additional insights into the fees associated with its compliance strategy for Europe's Digital Markets Act (DMA). While Google had previously emphasized its DMA compliance efforts, such as enabling app sideloading, it had not disclosed specific fee details until now.

Google's new External Offers program, introduced yesterday, empowers Play Store developers to guide their users in the European Economic Area (EEA) to offers outside their apps, including promotional deals. In line with Apple's approach, Google has implemented two fees within this program:

The Initial Acquisition Fee, set at 10% for in-app purchases or 5% for subscriptions over two years, represents the value provided by Play in facilitating the initial user acquisition through the Play Store.

The Ongoing Services Fee, where developers will pay a fee of 17% for in-app purchases or 7% for subscriptions, reflects the broader value Play offers in terms of ongoing services such as parental controls, security scanning, fraud prevention, and continuous app updates.

Developers have the option to opt out of the ongoing services fee after two years, provided that users consent. However, opting out will result in the cessation of these services for users who installed the app via the Play Store. Developers must register for the program as a business entity, and it applies to both games and apps. Additionally, developers can choose to participate in the external offers program while still utilizing Google Play's billing system.

Google also launched two other programs this week to enable alternative billing systems for in-app purchases, expanding to all developers whose apps cater to EEA users

Google also launched two other programs this week to enable alternative billing systems for in-app purchases, expanding to all developers whose apps cater to EEA users. These initiatives represent Google's efforts to comply with the DMA while offering developers greater flexibility and options for monetization within the app ecosystem.

fees associated with its compliance strategy for Europe's Digital Markets Act (DMA)