Google Offers to Tweak Play Store Terms to Stave Off EU Fine

Alphabet’s Google has offered to change terms and conditions for developers using its Play Store in a bid to stave off a potential fine under European Union tech rules. Google said it would alter fees it charges developers for app downloads and make it easier to lead users to deals and offers outside of its own app store. However, at the same time, the company warned that links leading outside the Play Store can expose users to security threats. Under the Digital Markets Act, major companies like Google and Apple have to obey a set of rules intended to make it easier for smaller players that rely on the tech giants’ ubiquitous platforms—from app stores to smartphone operating systems—to reach customers. Major tech companies can face fines of up to 10 percent of their annual worldwide turnover if found to be in breach of the rules. Google said it would reduce a so-called initial acquisition fee for app purchases to 3% from 10%. The company has also introduced a tiered fee system for services developers have access to in the Play Store such as app reviews, security scanning, and custom promotions. The move comes after the European Commission—the EU’s executive arm and antitrust watchdog—told Google that it believed current Play Store rules might be in breach of the Digital Markets Act, the bloc’s relatively new rulebook designed to rein in Big Tech’s market power.