Google Play Offers User Choice Billing in the UK: A Win for Developers and Consumers
In a significant move that promises to reshape the Android app ecosystem in the United Kingdom, Google has officially launched user choice billing for apps on the Google Play Store, effective March 29, 2025. This development comes after a regulatory probe by the UK's Competition and Markets Authority (CMA), with Google offering alternate payment options as a concession in 2023 to address antitrust concerns.
This update empowers developers in the UK to offer users a choice between Google Play's native billing system and an alternative billing system of their own within their apps. While developers cannot completely replace Google Play's billing, this additional option provides greater flexibility in how they process payments for digital goods and subscriptions.
What is User Choice Billing?
User choice billing (UCB) is a system that allows Android app developers to present users with two distinct payment options at the point of in-app purchase:
- Google Play Billing: The standard, secure payment processing system provided by Google.
- Developer's Alternative Billing: A payment system integrated by the app developer, potentially utilizing a third-party payment provider.
Users can then select their preferred method to complete the transaction.
Background: The CMA Investigation
The introduction of user choice billing in the UK is closely linked to an investigation launched by the CMA in June 2022. The CMA had concerns that Google's mandatory use of its own billing system for in-app purchases was anti-competitive, potentially leading to higher prices and reduced choice for consumers.
In April 2023, Google proposed offering alternative billing systems to settle the probe. The CMA then consulted on these proposed commitments. While the CMA ultimately closed its investigation in August 2024 citing administrative priorities, Google has now followed through with its offer, bringing user choice billing to the UK.
How User Choice Billing Works for Developers
For developers in the UK, implementing user choice billing involves several key aspects:
- Integration: Developers need to integrate with Google's alternative billing APIs, specifically using
- Choice Screen: When a user initiates an in-app purchase, the app must present a clear choice screen showcasing both the Google Play Billing option and the developer's alternative billing option. Standardized payment method image assets with specific dimensions (192dp x 20dp with transparent backgrounds) are required for the alternative billing option to ensure visual consistency.
- Service Fee Reduction: Developers who opt to offer an alternative billing system will receive a 4% reduction in the service fees they typically pay to Google on transactions made through the alternative system. Google typically charges a commission of up to 30% on in-app transactions.
- Reporting: Developers are required to report all transactions processed through alternative billing systems to Google within 24 hours, often using the ExternalTransactions API.
- Customer Support: Developers offering alternative billing are responsible for providing customer support for transactions processed through their system, including handling refunds and disputes.
- Subscription Management: For apps with subscriptions, developers must provide a subscription management URL where users can manage their subscription lifecycle.
Impact on Users
For users in the UK, the introduction of user choice billing may lead to several changes:
- More Payment Options: Users may encounter a wider range of payment methods depending on the alternative billing systems developers choose to integrate.
- Potential for Better Deals: The new system could enable developers to offer special in-app deals or pricing that were previously restricted under Google Play's rules.
- Different Purchase Management: Purchases made through alternative billing systems will not be managed by Google Play. This means users will need to refer to the app developer for customer support, refunds, and may not be able to use Google Play gift cards or Play Points for these transactions.
- Parental Controls: Parents using Google Family Link should be aware that parental controls and purchase restrictions may not apply to transactions made through alternative billing systems. The first time a child attempts to use an alternative billing system, the parent will be asked for a one-time approval. Subsequent purchases through that method might not require further parental consent.
Initial Rollout for Non-Gaming Apps
It's important to note that the initial rollout of user choice billing in the UK, mirroring the approach taken in other regions, is currently limited to non-gaming apps. Google has not yet announced when this option will be extended to gaming applications.
UK Joins Growing List
The UK is now the eighth jurisdiction where Google offers user choice billing. Other regions include the European Economic Area (EEA) countries, Australia, Brazil, Indonesia, Japan, South Africa, and the United States.
Conclusion
The launch of user choice billing in the UK marks a significant step towards providing greater flexibility and choice within the Google Play ecosystem. While initially focused on non-gaming apps, this development has the potential to benefit both developers, who can explore alternative revenue models and potentially lower fees, and users, who may gain access to more diverse payment options and potentially better deals. As the system matures and potentially expands to include gaming apps, its long-term impact on the UK's Android app market will be closely watched. Developers should carefully consider the implications and technical requirements of implementing alternative billing to determine if it aligns with their business strategies and user needs.
