Google allows alternative payment for apps, starting with Spotify (NASDAQ:GOOG)


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Google (GOOG, GOOGL) to let app developers give users the option to use their own billing systems rather than that of the Google Play Store.

It starts with Spotify (NYSE: SPOT), which announced a multi-year agreement on “user-choice billing”.

“Users who have downloaded Spotify from the Google Play Store will have the choice of paying with Spotify’s payment system or with Google Play Billing,” Spotify says in its blog post. “For the first time, these two options will co-exist within the app. This will give everyone the freedom to subscribe and make purchases using the payment option of their choice directly within the Spotify app.”

It’s a small driver for now, Google says.

This involves Spotify sending a portion of the subscription fees it collects to Google, albeit something less than the well-publicized 30% cut. Google previously noted that the vast majority of developers don’t pay 30%, saying that today 99% of developers are eligible for service fees of 15% or less.

The move follows controversy over the past two years, during which Google fought Epic Games over fortnite and its alternative compensation system, and Play Store approach prompted an antitrust lawsuit from state attorneys general.

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