Google allows Spotify its own in-app payment option in new pilot -Breaking
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© Reuters. FILEPHOTO: In this image illustration from April 1, 2018, a smartphone and headset can be seen standing in front a projection screen of Spotify logo. REUTERS/Dado Ruvic/Illustration/File Photo2/2
Paresh and Yuvraj Malik
(Reuters] -Google (NASDAQ:Alphabet Inc.) Wednesday announced that Google would permit Spotify Technology SA (NYSE 🙂 will use its own payment method in its Android App as part of a pilot that seeks to counter concerns from appmakers regarding high fees or allegedly anti-competitive behavior.
Spotify users who downloaded Spotify via the Google Play Store can choose to either pay using Spotify’s payment system, or use Google Play Billing for some countries.
A small group of developers will be able to add a billing option to Google Play in their apps through the pilot.
Google stated in a blog that the pilot would help them to better understand how users choose billing works in various countries, and with developers from different sizes and types.
Google announced last year that it will allow South Korean developers to create a second payment method under a South Korea competition law.
Spotify claimed that its Google trial was part of a multi-year agreement, but did not elaborate.
Spotify, an app developer that makes digital products has complained about the need to use Apple Inc’s App Store and the Play Store for payment.
Apple and Google can collect 30% as fees for each transaction, which is unacceptable to developers. Both companies have reduced fees for many reasons and both claim that these are necessary in order to support a mobile ecosystem.
Google has not specified the fees it will collect for its new pilot.
Google Play Billing requirements are being increased by the company. The company has warned that apps not in compliance could be banned from publishing updates on Friday.
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