Google’s decision to allow Spotify to use its own in-app payment system looks at first glance like an admission that the days of restrictive mobile app store domination and controversial high fees are coming to an end. But app developers should not get overly excited.
Companies like Epic Games and Match have long complained about fees collected via in-app payment systems. The scale of antitrust criticism suggests many regulators agree. Google Play and the Apple App Store typically take a 30 per cent cut of purchases such as subscriptions in the first year and 15 per cent after that. Providers argue that this is fair because they bring millions of users to apps and offer ongoing services such as security. But they have yet to offer a convincing explanation for the scale of fees charged.
Google’s new scheme will mean Spotify users on Android devices can use an alternative billing system.