The Digital Markets Act (DMA) in the European Economic Area (EEA) has introduced significant changes for online platforms including Google Play. A key aspect of this legislation is the prohibition of Most-Favoured Nation (MFN) clauses, also known as parity clauses, within contracts between designated Online Intermediation Services (OIS) and their business users who are located in or offer services to users in the EEA. Essentially, the DMA prevents platforms, like Google Play, from requiring developers to offer the same prices and conditions on their platform as they do on any other distribution channel within the EEA.
Google Play, being designated as an OIS, has taken steps to comply with these regulations. In early 2024, Google Play issued waiver notices to developers whose contracts potentially contained MFN clauses. This waiver effectively removes these clauses, meaning that developer’s contract with Google Play no longer prevents them, as an app developer, from offering their apps to users in the EEA at different prices or under different conditions on other platforms compared to the Play Store.
These MFN clauses, previously required developers to maintain price and condition parity between Google Play and other distribution channels within the EEA, potentially impacting pricing strategies, features offered, and even the geographic availability of products or services. It's important to note that this waiver applies regardless of where business is based; the key factor is whether developers are offering products or services to end-users within the EEA through Google Play. The waiver became effective last January 1, 2024, as stated in the individual notices sent to affected developers.
This adjustment provides developers with greater flexibility on how they distribute and price their apps within the EEA. To determine if developers received a waiver, please note that access to this information is typically granted only to those who were issued a notice, which would have been sent via email or physical mail in early 2024. Should you have questions regarding the implications of this waiver on your contract, you are encouraged to contact [email protected] for clarification.
For more details make sure to read, Previous changes to your contract with Google.