Google seems to be shaking things up in the tech world as it announced a pilot to test third-party billing systems within its Google Play ecosystem. The program will involve a small number of participating developers, starting with the popular music streaming app, Spotify.
Soon, Android users who want to pay for any of Spotify’s premium plans will be presented with a choice between Google Play Billing and the streaming app’s in-house payment system. The change will roll out in all countries where Spotify is available.
Today @GooglePlay and @Spotify announce a groundbreaking agreement that enables customer choice and sets the stage for what the next generation platform should look like: https://t.co/BtnXCS3nQl
— Daniel Ek (@eldsjal) March 23, 2022
Google usually charges a fee of between 15% to 30% to developers for Google Play Billing, but did not reveal the structure for this pilot. However, it is safe to assume that developers won’t be able to just avoid fees entirely. The company still charges developers an 11% fee for using third-party payment systems in South Korea after the country passed a law banning app store operators from requiring developers to use their own in-app purchase systems.
The move forced both Google and Apple to allow alternative payment systems on their respective app stores in South Korea. In case you need a reminder, Apple is vehemently against allowing third-party payments as we’ve seen in the Epic Games vs Apple trials. The tech giant is even stubborn enough to be willing to pay a weekly 5 million Euro (~RM23.3 million) fine in the Netherlands rather than allow alternative payment systems for developers.
(Sources: Android Developers Blog, Spotify)
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