Google to open up UK in-app payments to satisfy regulator's concerns

Britain's Competition and Markets Authority (CMA) said in June 2022 that Google's complete control over in-app payments unfairly restricted developers by forcing them to use Google Play's billing system, reducing competition, and hurting users.

Addressing concerns of unfair competition

The CMA said on Wednesday that Google's proposals would allow app developers to offer a different payment system ‘of their choosing’ or give users a choice between an alternative payment system and Google Play's billing system. Third-party payments providers could market their services to app developers, as per the proposal.

UK officials said they need to make sure these commitments will work in practice, so they welcome all feedback, which they will carefully consider before making a final decision. Google said it had made the commitments after constructive conversations with the regulator.

It said the roll out of user billing in Britain would build on its experience of offering similar systems in the European Economic Area and other parts of the world.

In a statement, Google explained that under the commitments, developers will be able to add an alternative in-app billing system, alongside Google Play's billing system, for their mobile and tablet users in the UK. At checkout, users will be able to choose which billing system to use.

The CMA invited comments on Google's proposals by 19 May 2023 before it makes a final judgment on the company’s in-app payment practices.