Edition #8 Google Showcases New Way of In-App Payments, Sideloading on Android
Andrew Christodoulou
Speaker ??| Financial Services Expert ??| Runner ??| BTW I like talking about Fintech??
Happy new year, happy new year, may we all have a vision now and then, of a world where in-app payments are super easy, simple and our friend ?? This month, we dive into 谷歌 's User Choice Billing and how sideloading will look like, Japan's new sweeping legislation to prevent abuse of dominant market positions by platform operators, and Spotify 's update on whether it's bringing in-app payments on iPhone. Let's dive straight into the details! ?
January update???
Google will implement changes in how payments and sideloading work on Android. The key modifications include allowing third-party payments for in-app purchases across Android and making sideloading easier for users. Despite Google's belief in Android's openness, these changes are aimed at offering user choice post-settlement.
The significant alteration involves supporting third-party payments for in-app purchases, providing users the option to buy directly from developers, potentially leading to lower prices or increased developer profits. The expansion of the "user choice billing program" allows developers to display third-party pricing options directly within their apps. Google will also simplify warnings about sideloading security risks, pending court approval for these changes' implementation.
Japan is drafting regulations set to be sent to parliament in 2024 that would require major tech companies to permit external app stores and payments on their mobile operating systems. The legislation aims to prevent abuse of dominant market positions by platform operators and would focus on app stores and payments, search, browsers, and operating systems. The Japan Fair Trade Commission would be empowered to impose fines for violations, with penalties potentially amounting to around 6% of revenue from the problematic activities.
The government will identify applicable companies based on criteria like sales and user numbers, affecting mainly multinational giants. The proposed changes aim to break effective monopolies on in-app payments, fostering competition and user choice while ensuring security and privacy protection. Japanese companies could run dedicated game stores on iOS devices and use payment systems with lower fees from domestic fintech firms. The legislation aligns with the goal of expanding the mobile app market, projected to reach $29.2 billion in 2023. The regulations also include provisions to prevent search engine operators from favoring their own services, similar to the EU's Digital Markets Act.
Reports suggesting that Spotify was adding in-app purchases for subscriptions on iPhone have been debunked by Spotify’s global head of corporate and policy communications. Despite the discovery of new code in the Spotify app on iOS indicating an in-app payment system, Spotify has clarified that it currently has no plans to enable in-app payments.
The dispute between Spotify and Apple, which led to the removal of the ability to subscribe to Spotify Premium through the App Store in 2016, continues, causing friction in the Spotify app experience on iOS. While recent reports hinted at a potential change, Spotify maintains that there won't be alterations to the payment method for Spotify Premium on iPhone in the near future. The lack of in-app purchases in the Spotify app remains inconvenient for Apple users, necessitating the use of Spotify's website for subscription payments.
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