Google Play policy update 2025: EU regulations force major changes to billing

In a bid to comply with new regulations enforced by the European Union, Google has announced major changes to its Play Store policies that will impact how app developers handle payments and promote their products across Europe.

Following orders stemming from the EU’s Digital Markets Act (DMA), Google will now allow developers in 30 European countries to direct users to external websites for completing in-app purchases. This adjustment effectively permits users to bypass Google Play's own payment system, marking a notable shift from previous restrictions that limited such options.

Under the updated policies, developers promoting purchases made outside the Play Store will benefit from reduced fees. The “initial acquisition fee” charged by Google will drop from 10 per cent to 3 per cent for transactions processed through alternative billing systems, although Google continues to maintain a tiered fee structure to account for services like app review and security.

Clare Kelly, Google’s senior competition counsel, acknowledged concerns around user safety and the risk of exposure to harmful content from third-party payment methods. She emphasised that Google’s External Offers Program is designed to balance these risks while providing developers more flexibility in offering choices to consumers.

The changes come as part of Google’s efforts to avoid fines mandated by the DMA, which holds digital gatekeepers accountable with penalties as high as 10 per cent of global annual revenue for non-compliance. The EU has increasingly scrutinised the policies of major tech companies to promote fair competition and greater consumer choice in the digital marketplace.

This policy overhaul affects millions of users and developers, reshaping the app purchasing process and fostering a more open payment ecosystem in the European Economic Area.

Google’s moves follow similar regulatory actions against other tech giants like Apple and Meta, signalling a growing regulatory push on platform economics and consumer rights across the continent.

The new Play Store rules are set to be implemented immediately, allowing EU consumers and developers to experience a more flexible and potentially cost-effective app ecosystem while maintaining Google’s commitment to user safety and app quality.