Google Introduces User Choice Billing in the U.K.

Google has announced that it will begin offering user choice billing in the U.K., allowing developers on Google Play to use alternative payment systems instead of Google’s own. The change will take effect on March 29, initially applying only to non-game developers.

How User Choice Billing Works

Developers opting for an alternative billing system cannot entirely remove Google Play’s billing; instead, they must offer it as an additional option at checkout.

To compensate for third-party processing fees, developers who choose this route will receive a 4% discount on the standard fees they pay to Google. Google typically takes up to 30% of in-app transactions and paid downloads,

In a blog post, Google stated that over 90% of developers on its platform are either “satisfied” or “very satisfied” with its billing system. However, it acknowledged that some developers prefer more flexibility, prompting this update.

Regulatory Pressure Behind the Move

Google’s decision is a direct response to an antitrust investigation by the U.K.’s Competition and Markets Authority (CMA), which began in 2022.

The CMA had expressed concerns over Google and Apple’s dominance in the mobile app ecosystem, particularly regarding their control over in-app billing. In 2023, Google proposed user choice billing as a solution to address these concerns. The CMA then consulted developers before eventually closing the probe.

The U.K.’s move follows similar regulatory actions worldwide. Google has already introduced user choice billing in several other regions, including the U.S., India, Australia, Indonesia, Japan, and the European Economic Area (EEA), with similar commission structures to the U.K.’s.

By expanding user choice billing, Google aims to comply with regulatory demands while maintaining its stronghold over app store transactions.