Google is in the crosshairs of the European Commission. A few days ago they announced a new investigation into monopolistic practices with AI summaries, but it is not the only front they have open. The company has already paid historical fines and you face a new one if you don’t make changes to Google Play, your app store.
what has happened. They tell it in Reuters. The European Commission is not satisfied with the changes that Google has made to its app store to comply with the Digital Markets Act or DMA. Regulators consider that there are two points that do not comply with the standards:
- There are technical restrictions that make it difficult for developers to direct users to external channels with better prices.
- Google continues to charge a commission to the developer even if the user buys the app from its website, with the excuse that they have “facilitated” the purchase.
Why is it important. If Google does not make the necessary changes to comply with the DMA, it faces a fine that could amount to 10% of its total revenue. In 2024 they will invoice 350,000 million dollarsso the maximum fine would amount to 35,000 million, the highest to date. Google can still offer to apply changes to avoid paying the fine.
The Apple case. The one the Commission is satisfied with is Apple. In fact, they are using your case as an example of what needs to be done. It was not a bed of roses and Apple was fined 500 million euros for not complying with the DMA. Apple had to remove restrictions that prevented redirection to alternative offers.
The Epic trial. The European Commission is not the only one that has Google Play in its sights. In the United States, the judge of the Epic vs Google case made a historic decision: Google would have to allow rival stores within the Play Store. Recently Google and Epic reached an agreement through which Google undertakes not to charge commissions of more than 20% on purchases’in-game’ and 9% for the rest. In addition, developers will be able to showcase other payment systems through Play Billing. The agreement must still be approved by the judge, but it seems that Google will have no options but to comply with what both the judge and the EU ask of it.
What Google says. The company announced changes in Google Play last August to avoid the fine, is what the Commission now considers insufficient. Google competition lawyer Clare Kelly said the company was “concerned that these could expose Android users to harmful content.”
This is the usual position of American companies that are under the scrutiny of the European Commission. Mark Zuckerberg called the DMA “censorship” and there has also been harsh criticism and tariff threats since the Trump administration. Recently, a national security strategy document He claimed that European laws could mean an “erasure of American civilization.”
The fruits of the DMA. He overregulation of the European Union is subject to criticism, but It also has a good side. Thanks to the DMA has made USB-C mandatory for all manufacturers, forcing Apple to abandon its proprietary connector. It has also brought us the Universal AirDrop and the changes in the app stores so that we have more freedom when it comes to where to download our apps.
Image | Xataka, Pexels
GIPHY App Key not set. Please check settings