Under EU antitrust pressure, Google modifies terms to relax restrictions on developers guiding users to external platforms
Google has updated its external incentive program in compliance with the EU's Digital Markets Act, allowing app developers to more easily direct users to platforms outside of Google. Although Google is concerned that this move may affect the security and app experience of Android users, it is still adjusting its fee structure and offering more options. EU competition regulators had previously determined that Google failed to comply with relevant regulations, giving preferential treatment to its own services
According to Zhitong Finance APP, Google, a subsidiary of Alphabet (GOOGL.US), will make it easier for app developers to direct customers to platforms outside of Google. In a blog post, Google stated that as part of its ongoing compliance with the EU Digital Markets Act (DMA), the company has further updated its External Offers Program to provide developers with more flexibility while addressing the trust and security needs of the entire ecosystem. Developers must meet eligibility requirements and complete registration for the program before promoting external offers.
Clare Kelly, Senior Competition Advisor for Google in the Europe, Middle East, and Africa (EMEA) region, stated in a statement: "While we remain concerned that these changes may expose Android users to harmful content and diminish the app experience, we are updating our External Offers Program in the EU based on discussions with the European Commission regarding the Digital Markets Act, adjusting fee structures and providing more options for Android developers."
In March of this year, EU competition regulators found that Google had failed to comply with the Digital Markets Act in two services. The European Commission stated that Alphabet, Google's parent company, gave "more favorable" treatment to its services such as Google Shopping, Hotels, and Flights in search results, providing "more prominent placement" for its own products compared to third-party services. Additionally, the European Commission claimed that the company's app store, Google Play, unfairly prevented developers from directing customers to their chosen offers and distribution channels, and charged developers fees for acquiring users
