Google Pitches Play Store Changes To Dodge Potential EU Fines: Report

Alphabet Inc.’s (GOOG) (GOOGL) Google on Tuesday reportedly pitched changes to its Play Store policies on purchases in a bid to dodge a potential fine in the European Union.

According to a Bloomberg report, Google’s proposed Play Store changes in the EU will make it easier for third-party developers to direct the users of their apps and games away from the company’s Android ecosystem.

Alphabet’s shares traded 1.5% lower by Tuesday noon. Retail sentiment on Stocktwits around the company was in the ‘bearish’ territory.

“While we still have concerns that these changes could expose Android users to harmful content and make the app experience worse, we’re updating our External Offers Program for the EU with revised fees and more options for Android developers,” said Clare Kelly, senior competition counsel at Google, according to the report.

Google’s proposed Play Store changes will apply throughout the 30 European countries, allowing app developers to direct users to the web and away from the Play Store’s in-app purchase mechanism. The Android maker has also updated its fee structure to cover costs, reducing “initial acquisition fees” for developers to 3% of the transaction charges from 10%, the report said.

In June, Apple announced a similar change, making it cheaper for app developers to let users make payments outside the iPhone maker’s ecosystem. This would bring down the transaction costs for developers to 10% for most developers, down from 30% previously. This came after the European Commission fined Apple $580 million under the Digital Markets Act.

GOOGL stock is up 6% year-to-date and 20% in the past 12 months.

Also See: Ford Considers Offloading Excess Battery Capacity As EV Market Weakens: Report

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