Google has announced that it will introduce user choice billing in the UK, allowing developers to offer alternative payment options alongside Google Play's native billing system. The change, set to take effect on March 29, will initially apply to non-game developers, giving them more flexibility in how they process payments.

Under the new system, developers who opt for alternative billing options will receive a 4% discount on the fees they pay to Google, which typically takes a cut of up to 30% on in-app transactions and paid downloads. However, developers will not be able to replace Google Play billing altogether, and the third-party route will be offered as an additional option.

Google claims that more than 90% of developers on its platform are "satisfied" or "very satisfied" with Google Play's native billing. However, the company acknowledges that some developers may want more choice in how they process payments, and this launch enables them to offer an additional billing system alongside Google Play's billing system.

The move is not entirely altruistic, as it is actually a response to a Competition and Markets Authority (CMA) investigation dating back to 2022. The CMA had raised concerns about Google and Apple's power in the mobile ecosystem, particularly with regards to their app stores and in-app billing systems. The watchdog had noted that the companies' dominance could be subject to regulatory scrutiny.

In 2023, Google proposed offering user choice billing to developers as a way to settle the antitrust probe. The CMA opened a consultation and invited developers to provide feedback on Google's proposal. Ultimately, the CMA closed the probe against Google and Apple last year, opting to use regulatory reforms, such as the digital market competition bill, to regulate these companies in the mobile market.

Google has already been permitting billing from third parties in other countries, including the US, India, Australia, Indonesia, Japan, and the European Economic Area (EEA), in response to regulatory pressure to open its app store to more competition. The commissions and charges in these countries will be the same as in the UK.

The introduction of user choice billing in the UK is a significant development in the ongoing efforts to promote competition and innovation in the mobile ecosystem. It remains to be seen how developers will respond to this new option, and whether it will lead to more competitive pricing and better services for consumers.

In the broader context, this move highlights the ongoing regulatory scrutiny of big tech companies and their dominance in various markets. As governments and regulatory bodies around the world grapple with the challenges posed by these companies, it is likely that we will see more efforts to promote competition and innovation in the years to come.