Google will allow Spotify to offer its own billing on Android

Sundar Pichai, senior vice president of Android, Chrome and Apps at Google Inc., gestures during the launch of the company’s Android One smartphone in New Delhi, India, on Monday, September 15, 2014.

Kuni Takahashi | Bloomberg | Getty Images

Google and Spotify said Wednesday that a future version of the Spotify app will allow users to sign up inside the app to pay Spotify directly for a subscription. In addition to payments on Google Play will be offered an alternative billing system Spotify, the company said.

The move is the most significant concession so far from a major mobile app store to allow third-party billing systems inside apps, which has become a major focus for regulators around the world.

Shares of Spotify rose about 4.5% in trading during non-business hours on the news.

Historically, in Google Play, as well as in Apple’s App Store, developers are usually unable to request credit card numbers directly from their customers to bill them for digital goods or services. Instead, they should bill users through Google, which accounts for at least 15% and as much as 30% of total sales.

But there are caveats: Google’s announcement on Wednesday called the move a “pilot” and did not offer a timeline for widespread implementation and did not indicate which countries would be the first to receive the feature. The ad assumed that only a “small number” of app makers would be allowed to offer their own account to begin with.

“This pilot will allow a small number of participating developers to offer additional billing options alongside the Google Play billing system and is designed to help us explore ways to offer this choice to users while maintaining our ability to invest in the ecosystem,” Google said in a blog post.

Google has confirmed that Spotify will continue to pay Google a fee for payments that it processes itself. Google has said it will “rely” on the policy it has introduced in South Korea, where it continues to charge an 11% fee for subscription purchases made through alternative invoicing, which has become a requirement of a recent law passed in the country.

The move also puts pressure on Apple, which strongly opposes third-party billing in its iPhone App Store for digital goods, and claims that its App Store competes with Google Play, especially when it comes to app distribution terms and fees.

Apple has fought a lawsuit against Epic Games, which is currently being appealed over whether the developer can offer alternative bills in the US. Apple has not yet publicly discussed how it will handle alternative accounts in Korea, and is being fined millions of euros in Korea. The Netherlands is over its approach to regulating billing applications.

Spotify is one of the most important companies that publicly criticizes Apple and its App Store policy that reduces recurring subscriptions. He filed a complaint with the European Union, and last year a Spotify official told Congress that the fees she pays Apple are unfair because Apple doesn’t pay the same fees for Apple’s own service Music.

Google will allow Spotify to offer its own billing on Android

Source link Google will allow Spotify to offer its own billing on Android

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