Google We will further evolve our rules regarding in-app payments. android The device was the result of a huge $700 million settlement of a competition law case involving attorneys general from each state in the United States.
Josh SteinThe attorney general of North Carolina, one of the states that led the action, told Reuters that the changes Google must make “will lead to more innovation for app developers and lower prices for consumers.” , that has always been our top priority.” goal”.
Both Google and Apple have faced a lot of criticism over the rules they impose on companies running apps on Android and iOS devices. Most criticized are rules that force some app makers to use Google and Apple’s own fee-collecting transaction systems when making in-app payments.
In the music industry, Spotify has been particularly vocal about all of this. In fact, the company has reached an agreement with Google that allows it to make in-app payments through its own transaction system. Meanwhile, in Apple’s case, the music service is putting pressure on competition regulators around the world to force rule changes, with decisions on long-running investigations, particularly in the European Union, expected in the new year.
Epic Games, the maker of Fortnite, has also been active in this area, suing both Apple and Google in US court. In the Apple case, the judge largely sided with the tech giant, but said that under California law, Apple should allow Epic to link to alternative payment options from its iOS app. Google’s lawsuit was heard by a jury that sided with Epic earlier this month.
In a lawsuit led by various U.S. states, Reuters reports: “Google is accused of overcharging consumers through illegal restrictions on app distribution on Android devices and unnecessary fees for in-app transactions. Google has admitted no wrongdoing. No,” he explains.
A settlement was actually reached in September, but publication of the deal was delayed until Epic’s trial began. Google will pay $630 million into a consumer settlement fund and $70 million into a fund to be used by states. More than 70 million American consumers are likely to receive compensation payments, so each individual will receive a relatively small amount, despite the large total amount.
Of more interest to app makers is Google’s efforts to change the rules for apps that include in-app payments. But critics say the changes aren’t actually that drastic and simply extend Google’s already piloted “user-selective pricing” scheme when it comes to in-app payments. claims.
Under this scheme, Spotify was able to resume using in-app payments on Android devices, with Google Pay also an option. Epic’s lawsuit reveals that Spotify secured very favorable terms as part of its plan. However, other app makers are not offered such good conditions. This means that even if a third-party trading system is used, Google will still receive a significant amount of money.
Epic boss Tim Sweeney said on Twitter: “The state attorney general’s settlement is unfair to all Android users and developers. This settlement will extend anti-competitive Google Play billing strings to new anti-competitive ‘User Choice Bills’ imposed by Google. ” string, authorizing Google to impose a 30% exclusivity fee. Unprocessed payments will be subject to a wasted 26% Google tax. ”