Google opens for Android desktop apps

Google and Apple have seen increasing pressure from competitors and parts of the app developer industry in recent years. They investigate the former and criticize the latter, whether the abusive terms imposed by the two multinational companies in the Android and iOS app stores. One of the most controversial practices is related to the commissions they charge for each transaction made through third-party apps, with the veto that apps have their own payment systems. Google has taken the first step to abandon this practice, a small but hitherto unprecedented one.

In the “pilot project” that it will implement together with Spotify, the multinational company will allow the music service to use its own billing system through its Android application, bypassing Google Play. It will be up to the user to choose which payment gateway to use: if it is Spotify, the Swedish company will save the commission of 15% to 30% with which Google pays for services of its size.

The program includes other developers that have not yet been identified. “As the developer of one of the largest signatures in the world, with a global presence and integration in a wide range of form factors, it is a natural first partner,” said Summer Samat, Google’s vice president of operations at Spotify. From Android. “This pilot test will help us better understand whether and how customer-selected billing works for consumers in different countries and for developers of different sizes and categories.

Repair Commissions

Google and Apple explain that they are investing this fee in consolidating the security of their ecosystems. This involves keeping the privacy of each user billing information or tracking apps that can be downloaded from their stores for malicious activity. “When users choose Google Play, it’s because we expect them to provide a secure experience, and that includes in-app payment systems that protect users’ data and financial information,” Samat recalled. Alternative. “Billing systems meet equally high standards of security.”

However, both companies unilaterally decided to reduce the fees they charge for transactions due to increased pressure from competitors on the practice. Both decided in 2021 that the maximum interest they would receive on payments made by the smallest developers to those who did not exceed one million dollars should not exceed 15%. In practice, the new policy affects 99% of app developers, protecting Google and Apple.

Dealing with a rebel

Google’s deal with Spotify comes after the Swedish company was a traditional partner in the claims of Epic Games, which took the fight to the extreme so that third-party apps could have their own billing systems on Android and iOS.

The fee reduction is one of the measures taken by the two multinational companies that dominate the mobile market (84.1% for Android and 15.9% for iOS, according to Kantar Spain) after Epic Games decided to sue them for a monopoly. The creator of the popular video game Fortnite believes that the fact that none of them allowed third-party apps to set up their own payment gateways, along with the 30% commissions they charged by 2021, constitutes an abuse of a dominant position. .

Epic Games has stepped up its fight against Apple, a process that has already made its first court ruling. A California judge partially upheld the studio’s lawsuit and forced the manufacturer to allow third-party apps to access users on their own payment systems. However, he denied allegations that the App Store is a monopoly and allowed Apple to continue to impose rules, for example, its store was the only official method of downloading apps to devices. Both companies have complained that Apple has banned Fornite from its devices until a dispute can be resolved, which could take years. Epic Games, which uses the role of a rebel, has developed a method of bypassing the block.

In a lawsuit against Google, Epic Games denounces that the company was maneuvering to get other apps to follow suit and leave the official app store. This issue is more critical for Google than for Apple because Android allows you to launch apps without an official store. There was no trial in this case.

We hope the work we are doing together will pave the way for the benefit of the rest of the industry.

Spotify, about the agreement with Google

Epic Games and Spotify were among the coalition’s founding app justice organizations whose main function was to condemn the power that Apple and Google could use over developers. “We want to break their duopoly over app stores,” its director said in a February interview. everyday.” The coalition did not respond to todaytimeslive.com’ questions about the agreement between Google and Spotify.

Alex Norstrom, CEO of Spotify Subscriptions, recalls that his company “has been working for years to ensure that app developers have the freedom to innovate and compete on an equal footing.” “We are pleased to partner with Google to explore this payment choice approach and opportunities for developers, consumers and the entire Internet ecosystem. “We hope that the work we are doing together will pave the way for the benefit of the rest of the industry,” he added.

“It will take time”

Google also did not provide further details on this media question as to what other companies could participate in the pilot project, or whether Spain will be among the countries where it will take place. “We are not announcing more details now. The pilot project has just been launched and we are working with Spotify and other pilot partners to build and replicate the implementation and structure, and we will have more to share in the coming months, ”explained the multinational sources.

The move by Google is unprecedented in the industry, but the company warns that implementation, as a general rule for all apps, will not happen overnight. “We understand that this process will take time and requires close collaboration with our developers, but we are pleased with this first step,” concludes Sameer Samat.