Google announced that it’s collaborating with Spotify – the Swedish media and audio streaming service provider – to test third-party payment options for application developers.
Google and Apple faced massive pressure over increased fees on in-app transactions on their smartphone platforms, iOS and Android. Indeed, Spotify plays a crucial role in ramping up that coercion. Thus, Google is allowing app developers, particularly Spotify, to test different in-app payment options.
Google already allowed app developers from South Korea to add extra billing systems after the country presented new legislation regarding app stores.
With Google and Spotify collaboration, Spotify customers will easily access various billing options such as Spotify’s own or Google.
Sameer Samat – Product Management Vice President at Android – said, “Together, we’ll work to innovate in how consumers make in-app purchases, deliver engaging experiences across multiple devices, and bring more consumers to the Android platform.”
The long-standing controversy
Apple and Google’s insistence that customers could only utilize their billing methods has always been controversial. As per various critics, they have been extracting 30% commissions on several payments.
Epic Games –The developer of Fortnite – was so furious by these expenses that they filed a suit against Apple, blaming the company for anti-competitive behavior.
For a long time, Spotify has criticized both Google and Apple’s app-stores fees even filed an anti-trust complaint against the 2019 Apple tax.
Though Google didn’t say much about collaboration details, it is assumed users choosing the Spotify payment option will pay a reduced commission compared to users who pay via Google Play. No matter what payment method Spotify utilizes, it will charge its costs.
Is this a good idea?
Various experts say that everyone will win if Spotify charges its customers directly, including Google and customers.
“Spotify customers will get a more portable subscription service, Spotify may get a little more revenue and Google will be able to one-up Apple by attracting more content and service providers with its friendlier policy,” Mueller said. “What Google may loose on payment loyalties can be made up in additional workloads for Google Cloud, and that’s the place where it really needs, and wants to grow.”