Google overhauls Play Store to avoid future EU penalties

Google has announced changes to its Play Store in Europe after EU regulators warned the company about restricting app developers from directing users outside Android for purchases.

The update, which covers 30 European countries, will let apps guide users to web-based payments instead of using only the Play Store.

Google, under the EU’s Digital Markets Act, will lower developer fees from 10% to 3% but add a new tiered fee system.

The company said allowing users to transact outside the Play Store could increase security risks.

The EU had previously forced similar changes on Apple’s App Store and has fined Apple and Meta €500 million (US$581 million) and €200 million (US$232.6 million), under the Digital Markets Act.

Google has already paid over €8 billion (US$9.3 billion) in penalties in recent years for antitrust violations in Europe.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Proactive compliance becomes competitive advantage under strict regulatory regimes

Google’s preemptive Play Store changes demonstrate how companies can avoid costly penalties by learning from competitors’ regulatory missteps.

While Apple and Meta waited until after enforcement and were fined €500 million and €200 million respectively for DMA violations, Google is implementing changes before facing penalties 2.

This proactive approach could save Google significant costs, especially considering the DMA allows fines up to 10% of global annual revenue, potentially tens of billions for a company of Google’s size 1.

The strategy reflects lessons learned from Google’s own regulatory history, having already paid over €8 billion in EU competition fines over recent years 1.

Companies operating under heightened regulatory scrutiny increasingly find that the cost of preemptive compliance is far lower than the financial and reputational damage of enforcement actions.

2️⃣ Regulatory enforcement creates escalating financial pressure across tech giants

The EU’s enforcement pattern reveals increasing financial consequences as regulations become more targeted and punitive.