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On the occasion of the final approval of the Digital Marketplaces Act by the Council of the European Union, Google announced that now allows app developers - not games initially - to offer alternative payment systems to users in the European Economic Area (EEA).

This includes the countries of the European Union, Iceland, Liechtenstein and Norway. At the same time Google will reduce its commission by 3% for in-app purchases made through an alternative billing system in the EEA. Google says the new policy means that developers' 99% will be charged a 12% commission when a customer completes a transaction through a third-party payment processing system, compared to the 15% that applies to Google Play's billing system. 

The company says it expects to extend the alternative charging scheme to game creators within the EEA before the Digital Markets Act's entry into force date, which is at least six months away, according to the European Council. The Google Play billing system will continue to be required for all apps distributed through the company's online store in all other countries, including the United States.


The first step that interested developers need to take is to fill in a form stating that they wish to offer alternative charging schemes in the EEA. From 1 August 2022, developers will be required to report to Google Play the amount of revenue generated by the apps to which they have added an alternative billing system in order to be charged by Google. Those interested in learning more about the program and signing up can visit related website, with Google promising more details in the coming weeks.

For its part, Apple has not yet announced plans to allow App Store apps to offer alternative billing systems to users. However, to comply with regulations in the Netherlands, the company is allowing dating apps to offer alternative billing systems, with Apple reducing its commission by 3% for transactions. Still last month, Apple began allowing developers in South Korea to offer alternative billing systems to users because of the laws in place in the country.

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