Spotify And Google Roll Out User Choice Billing On Android Smartphones – SlashGear

Spotify is among the most well-known brands that has vocally opposed the 30/70% revenue split formula between app developers and platform gatekeepers. So far, Google and Apple have forced developers to stick with each storefront’s in-house billing systems for any app listed on the Play Store and App Store. Thanks to this mandatory agreement, Apple and Google have ensured that each gets up to a 30% cut from all in-app transactions — be it subscriptions, or in-game purchases.

In fact, it was Spotify’s complaint in Europe that eventually snowballed into an official anti-trust enquiry for Apple. Apple, in return, recently forced Spotify to drop its audiobook ambitions. Google was soon looped under the scrutiny lens. Facing intense backlash and impending restrictions from competition watchdogs in multiple countries, some concessions have been made, such as Google lowering its fee to as low as 12% in special cases.

Apple was forced to allow third-party payment channels for apps distributed in South Korea, but the company retaliated with a hefty 26% fee for providing an app distribution platform. Google was also slapped with fines worth over $200 million in India, and it also had to pause the mandatory clause forcing its billing system on developers. It is becoming increasingly evident that Google and Apple will either have to drop controversial payment rules or drop their cut — otherwise each risks hefty fines and regulatory action in major markets.