Google, one of the world’s digital giants, has announced sweeping changes to its Play Store operations for users and developers in the European Union—a move that’s sending ripples through the tech industry and drawing sharp lines between regulators, developers, and the company itself. The announcement, made on August 20, 2025, marks a pivotal shift in how Android apps are distributed and paid for across Europe, as Google seeks to comply with the European Union’s Digital Markets Act (DMA) and stave off potentially massive fines.
The Digital Markets Act, which came into force in 2023, was designed to rein in the so-called “gatekeepers”—tech behemoths like Google, Apple, Meta, and others—by forcing them to open up their tightly controlled ecosystems. The DMA’s core aim is to foster competition, empower developers, and offer consumers more choices. In this context, Google’s Play Store has long been a central hub for Android users to download and purchase apps, but it’s also been criticized for its restrictive policies and hefty service fees charged to app developers.
According to Reuters, the European Commission charged Google in March 2024 with two violations under the DMA. Regulators accused the company of restricting app developers from informing users about better deals outside the Play Store and unfairly favoring its own vertical search services, such as Google Flights. The Commission also argued that Google’s service fees went beyond what was justified for connecting app developers with new customers. The stakes are high: under the DMA, companies found in violation can face fines of up to 10% of their global annual revenue—a figure that could reach into the billions for Alphabet, Google’s parent company.
In response to mounting regulatory pressure, Google has updated its External Offers Program for the EU. The company announced that developers will now be allowed to direct users to offers and payment methods outside the Play Store, effectively bypassing the traditional gatekeeping that had kept app transactions within Google’s walled garden. This means developers can offer direct downloads and alternative payment options, a long-sought demand by many in the app community.
But there’s more to the story than just newfound freedom for developers. Google has also introduced a new fee structure meant to offset potential revenue losses from these changes. The company’s Play Store generated $12 billion globally in 2024, with about 17% of that coming from Europe, according to MT Newswires. The new External Offers Program fee model slashes the initial “acquisition fee” for developers from 10% to just 3%, and this reduced rate applies only for the first six months after a user installs an app. After that, a tiered ongoing service fee kicks in, with “Tier 1” being mandatory for app safety and “Tier 2” optional for additional capabilities, such as enhanced app distribution, discovery, and custom promotion campaigns.
Google’s fixed fee rates per app install now vary by country and app type, ranging from as low as €0.10 for a game installed in Romania to as high as €1.90 for a game installed in Germany. While this may sound like a win for developers, not everyone is impressed. Tim Sweeney, CEO of Epic Games and a longtime critic of both Apple’s and Google’s app store policies, didn’t mince words, calling Google’s move “plainly unlawful” and denouncing the changes as “junk fees and discriminatory deprioritisation of search results.” Similarly, Gene Burrus from the Coalition for App Fairness, which represents heavyweights like Spotify and Match Group, slammed Google’s move, saying it “perpetuates fees and restrictions that violate the DMA.”
Despite the criticism, Google insists it’s walking a fine line between increased developer flexibility and the need to maintain user security. “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, following DMA discussions with the European Commission,” said Clare Kelly, Google’s senior competition counsel for Europe, the Middle East, and Africa, in a statement provided to Euronews Next.
The company’s caution is not unfounded. By allowing developers to direct users outside the Play Store, Google argues there’s a heightened risk of malware and other security threats. To mitigate this, Google is urging users to only install apps from trusted sources, such as the Play Store itself. “We still have concerns that these changes could expose Android users to harmful content and make the app experience worse,” Kelly reiterated, as reported by Euractiv. That’s a tricky balance: more openness for developers could mean more risk for users, and Google is clearly eager to avoid being blamed for any spike in security incidents.
Meanwhile, the European Commission is keeping a close watch. In March 2025, the Commission issued a preliminary breach finding against Google’s Play Store, and while Apple and Meta have already been hit with hefty fines—€500 million and €200 million respectively in 2025—Google has so far managed to dodge a DMA penalty. But the threat remains. The Commission has made it clear that it will not hesitate to levy fines for confirmed violations, and Google’s latest moves appear to be a direct attempt to avoid the same fate as its rivals.
From a broader perspective, the changes signal a seismic shift in the digital marketplace. As reported by MT Newswires, Europe’s push for greater competition is putting Big Tech’s profits on notice. Investors are watching closely to see how the new fee structures and open-door policies might squeeze margins—not just for Google, but for other tech giants who may soon face similar regulations worldwide. The DMA’s ripple effect could well prompt regulatory bodies in other regions to adopt comparable measures, further eroding the dominance of entrenched platforms.
For developers, the new rules offer both opportunity and uncertainty. Independent creators may see higher earnings and broader access to users, but they’ll also have to navigate a potentially more fragmented—and perhaps less secure—app landscape. Google Play and Android, for their part, have generated over €3 billion in revenue for European developers, according to Euronews. The hope among many in the industry is that these regulatory changes will help level the playing field and spur innovation, even as the debate over fees and security rages on.
As the dust settles, one thing is clear: the battle over digital gatekeeping is far from over. Google’s latest concessions in the EU mark a new era for app distribution, but also raise tough questions about security, fairness, and the future of the global app economy. With regulators, developers, and tech giants all vying for influence, Europe’s digital marketplace is poised for further upheaval—and the world is watching to see what comes next.
