Google tweaks Google Play conditions following EU pressure

PARIS (Reuters) -Alphabet unit Google said on Tuesday it will make it easier for app developers to steer customers to channels other than Google after the European Union competition watchdog charged it with breaching EU regulations.

In March, Google was hit with two charges of breaching the EU's landmark Digital Markets Act (DMA), which aims to rein in the power of Big Tech.

Google has been in the European Commission's crosshairs since early 2024 over whether it restricts app developers from informing users about offers outside its app store Google Play and whether it favours its vertical search services such as Google Flights.

Regulators have said Alphabet technically prevents app developers from freely steering consumers to other channels for better offers.

They said a service fee charged by the company for facilitating the initial acquisition of a new customer by an app developer via Google Play goes beyond what is justified.

In a blog post, Google said that following discussions with the European Commission, developers, and other experts, Google is updating certain terms.

"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," EMEA Senior Competition Counsel Clare Kelly said.

The company, which has been fined more than 8 billion euros ($9.3 billion) by the EU for various antitrust violations, risks fines of up to 10% of its global annual sales if found guilty of breaching the DMA.

($1 = 0.8580 euros)

(Reporting by Foo Yun Chee, writing by GV De Clercq; Editing by Aidan Lewis)