Google’s Big Concession: A New Policy Could Upend the Play Store in the EU

In March 2025, the European Commission ruled that Google’s operation of the Google Play Store was in violation of the EU Digital Markets Act (DMA), citing Google’s prohibition on mobile app developers freely directing users toward alternative payment systems that might offer more favorable terms.

The Commission further noted that Google had employed technical measures to block certain forms of redirection and that the fees Google charged developers—both for initial user acquisition through the Play Store and for subsequent in-app transactions—were unreasonably high and excessively prolonged.

For Google, these practices were found to be unlawful under EU regulations. Failure to remedy them could have triggered deeper investigations and potentially another round of hefty fines. Indeed, over the past decade, Google has already paid more than $8 billion in penalties for monopolistic conduct.

This week, Google published a blog post announcing policy adjustments to its Play Store operations within the EU. While expressing concerns that such changes could expose Android users to potentially harmful content, the company nevertheless agreed to comply with EU directives by revising both its external offers program and its fee structure.

Under the new external offers program, developers in the EU will be permitted to use pop-up notifications or other prompts to direct users toward alternative channels where services may be purchased at lower prices. They may also include direct download links for applications.

In terms of fees, Google proposed reducing its commission from 10% per transaction to a more reasonable 3%, while introducing a streamlined two-tier subscription model designed to lower developer costs and provide users with more competitive pricing.

The revised structure also includes a reduction in both the duration and amount of initial acquisition fees. The first tier will cover essential services such as app details, ratings, and compliance checks, while the second tier—which includes features like discovery, recommendations, and editorial curation—will serve as an optional value-added service.

Whether Google’s proposed changes fully satisfy the DMA remains subject to review. The European Commission has yet to issue an official response. Should the proposals be approved, Google may avoid further investigation and escape additional multi-billion-dollar penalties.

Nevertheless, since violations have already been established, the Commission still retains the authority to impose fines—though any such penalties would likely be of a lesser magnitude.

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