Google got in some trouble in the past for requiring apps in the Google Play Store to use its billing. The tech giant is facing lawsuits from companies like Match Group and Epic Games for this particular reason.
Google finally came up with a solution allowing some Android apps to use their own payment systems. Although reports suggest that the move is not permanent.
Why is Google Play stopping apps from using their billing system?
Match group withdrew its temporary restraining order against Google they demanded some “concessions” from them. Match’s conditions included making sure it also would not be kicked out from the play store for using alternative payment options.
According to a report by TechCrunch, Rather than paying Google, Match group put $40 million in escrow. The company is keen on maintaining that the fees are illegal and are awaiting a judge’s ruling.
Firstly, The lawsuit says that Google’s Play Store policy has “illegally monopolized” the app market for Android. Google’s Play Store guidelines force app makers to use the company’s billing system.
The company mentioned that google takes a cut from the proceeds. Google said that it charges for services “just like any other business” would and that its fee is the “lowest among major app platforms.”
How are they handling this?
According to a report by protocol, Google’s spokesperson made certain clarifications about the whole fiasco.” We plan to rebut Match’s unfounded complaint and will be counter-suing for damages and breach of our developer contract,”.
However, “Match has agreed to put up to $40 million in escrow as a reserve. They said it’s for against damages and to work to integrate Google Play’s billing system.” Epic games subsidiary Bandcamp also had some gripes with google’s billing system, however, reports suggest things have been settled.
The companies worked through their differences and made a legal settlement. Google agreed not to kick Bandcamp from the play store for using its own payment system. The agreement said, Bandcamp will also start an escrow account for Google’s fees seeing aside 10% of its revenue.
In March, Epic purchased Bandcamp, an online music platform that has employed its own pricing system for Android since 2015. Google previously warned Bandcamp with threats like removing them from the play store altogether.
Google provided them with a time period, June 1 to be precise to start using google’s own billing system. Bandcamp used its own system for so long because Google has an exemption from its guideline for music providers.
“We’ll continue to defend our business against Epic’s campaign to not pay for the value they get from Google Play,” the Google spokesperson said. What are your thoughts on the situation? Tell us in the comments.