CMA Proposes Cutting Google Play Store Commissions Below 30%
The Competition and Markets Authority proposes forcing Google to allow developers to promote cheaper in-app subscriptions and links to alternative purchase sites, lowering commission levies below the current 30% rate. Google has already updated its Android Play Store to permit steering, potentially reducing costs for millions of users and boosting developer innovation.
1. Proposed CMA Steering Rules
The Competition and Markets Authority is considering a rule that would require Google to allow app developers to display alternative subscription prices and provide direct links to external purchase pages within their Android apps. This would effectively cap Google’s in-app commission rates below the standard 30% fee currently charged on Play Store transactions. The CMA believes this move will introduce competitive pressure into the mobile ecosystem, which it has identified as lacking sufficient market rivalry.
2. Google’s Play Store Updates
In response to regulatory scrutiny, Google preemptively adjusted its Android Play Store policies to permit developers to direct users to their own websites for purchases. Under the new rules, apps can include messaging about lower-cost subscriptions available off-platform without facing anti-steering penalties. Google maintains it will still levy fees on transactions initiated through these external links, but at rates it says will be lower than the existing 30% commission.
3. Financial and Market Impact
If implemented, the proposed steering requirements could substantially reduce Play Store revenue, which accounted for billions in developer fees last year. Developers could retain a larger share of subscription revenues, potentially passing savings to consumers or reinvesting in product development. Reduced barriers may also spur innovation among smaller studios and publishers, though Google warns of increased security risks and potential fraud outside its controlled ecosystem.
