Google announced Tuesday it will make app marketplace terms easier for developers following pressure from European Union regulators. Euronews reports the tech giant will allow Android developers to direct users outside Google Play for purchases and transactions.

The European Commission accused Google's parent company Alphabet in March of violating EU rules under the Digital Markets Act. Regulators said the company prevented app developers from informing users about better offers outside Google Play. The Commission also claimed Google charged fees that went beyond justified levels when developers acquired new customers.

Google will reduce developer fees and add flexibility for directing users to external links. The changes apply across 30 European countries through the External Offers Program for the European Union.

Why This Policy Change Matters

The updates directly address EU competition concerns about app store gatekeeping practices. Google risks fines up to 10% of global annual sales if found guilty of Digital Markets Act violations. Bloomberg notes the company has already paid over 8 billion euros in EU antitrust fines.

App developers will benefit from reduced initial acquisition fees, dropping from 10% to 3% of transaction charges. PYMNTS reports developers can now select ongoing service tiers and promote external app downloads. The changes become available this fall for eligible developers who complete enrollment requirements.

European consumers gain more purchasing options and potentially lower prices through increased competition. The policy shifts remove barriers that previously kept users within Google's payment ecosystem.

Industry Response and Broader Digital Market Impact

The Digital Markets Act enforcement represents a major shift in tech regulation worldwide. Tech Policy Press reports seven gatekeepers including Alphabet, Apple, Meta, Amazon, Microsoft, ByteDance, and Booking must comply with strict obligations.

Apple and Meta became the first companies fined under the Digital Markets Act in April 2025. Apple paid 500 million euros for App Store steering violations, while Meta received a 200 million euro penalty. Google's proactive policy changes aim to avoid similar enforcement actions.

Competition authorities gain momentum for structural remedies in cases of repeated violations. The Commission can force business divestitures or prohibit acquisitions for systematic non-compliance. These enforcement powers extend beyond traditional financial penalties to reshape entire business models.

Further Reading

For deeper insights into global adoption trends, our Alternative Financial Systems Index tracks regulatory frameworks and adoption metrics across 50 countries. The index provides comprehensive analysis of how digital payment regulations evolve worldwide.