Earlier quoted context omitted.
"Regulation" is a general term, and meaningless in this case. What rules exactly would you like to see imposed? Should Google have to allow every payment processor? What if some are scammers? Is Google responsible to blocking them? What oversight should exist to ensure they don't "unfairly" block some? I'm not fundamentally opposed to regulations, but I really dislike it when people throw around the term as if it was…
I'm not really prescribing a solution, just identifying a class of problem. However, that said, here's an idea: I'd like to see Google forced to provide a minimum level of support to their customers and suppliers. For example, if they decide to cut someone off (as in this case) then they must explain their decision with a certain minimum level of detail. I'd also like to see a formal appeals system, possibly with an…
When you say that regulation is needed, you are prescribing a solution.
WRT to your proposal, how would that help in this case? The developer would just pay the fee, and Google would tell them "you broke the 'Google Play Developer Program Policies' agreement, which says you can't use third-party payment providers".
In fact, the developer says Google gave the official reason, so what would be the purpose of paying to get the same answer?