Google Play has revealed plans to allow app developers to use alternative billing and payment systems following an investigation by the UK’s competition watchdog.

The move comes after the Competition and Markets Authority (CMA) carried out a market study into mobile ecosystems in which it raised concerns about Google’s control over payment processing on the platform.

Google Play, which accounts for more than 90 per cent of native app downloads on Android devices, currently forces developers to use its own own billing system for in-app purchases.

After finding that this could be leading to higher prices and less choice for Android users, the regulator carried out a subsequent investigation into the company’s in-app payment rules.

The CMA is now consulting on a set of commitments put forward by Google, which include allowing developers to break away from its billing system and use alternatives to process in-app payments.

Under the new proposals, third party payment providers would be able to market their services to app developers for processing transactions involving digital content.

The authority said this would allow for greater innovation and competition for Google Play in-app payment services.

“Google’s complete control over in-app payments raised concerns this unfairly restricted app developers – by forcing them to use Google Play’s billing system – putting distance between them and their customers and reducing competition, to the detriment of Google Play users,” said Anne Pope, senior director of antitrust, CMA.

She said that while the organisation is pleased that its investigation has led to Google giving in-app payment freedom to thousands of app developers, it needs to ensure the commitments will “work in practice”.

The CMA is looking for feedback on the proposed changes until 19 May 2023.

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