Google has decided to test the possibility of allowing developers to use their own billing systems on their apps, with Spotify being one of the first to be granted the opportunity.
Allowing such feature would allow users to pay or subscribe through the app rather than having to go to an external website from the developer. In this case users will be given the choice to subscribe to Spotify through the app using either their Google Play wallet, or Spotify’s own billing method. Under this new agreement Spotify will be charged less than the standard 30% commission, but the final figure has not been announced at this time.
I believe that the move is beneficial to both companies and will most likely lead to change in the app market, if this method proves successful it will allow more developers the ability to adopt this feature. Having the ability of using your own billing system is a big advantage and useful tool for developers. In the past when using Apple’s App Store, if users wanted to purchase a Spotify subscription they were required to pay £12.99 due to Apple’s 30% commission, Apple also didn’t allow the possibility of Spotify telling users to subscribe outside of the App Store system to pay less, which it was later ruled that the move was in breach of the EU Competition Law, following this Spotify stopped the ability for new users to subscribe with Apple, and to use their website instead. This move from Google will help to avoid problems like this on their platform, and may later push Apple in a similar direction of it proves to be a competitive advantage for Google.
Sources:
https://variety.com/2022/music/news/spotify-google-billing-system-subscription-deal-1235212772/
https://support.google.com/googleplay/android-developer/answer/112622?hl=en
https://www.cnbc.com/2021/04/30/eu-says-apples-app-store-breaches-competition-rules.html
I hope Apple also change their policy soon. Some users might still prefer to subscribe through Google or Apple if that way is more convenient for them even though they have to pay more. But I think every user has to be given a chance to compare the price and decide by allowing developers to share their price inside the application.