Google threatening Android app makers who use alternative payment services

Posted:
in General Discussion edited January 2014


A new report claims Google has been threatening developers that it will remove from its Google Play app market Android apps that eschew its Google Wallet payment service in favor of third-party options.



Developers, executives and investors in the mobile gaming and payment sectors have indicated to Reuters that Google has warned that accepting in-app payments from services like PayPal, Zong and Boku violates its terms of use.



"[Google] told people that if they used other payment services they would be breaking the terms of use," Si Shen, founder and chief executive of Android social gaming network Papaya, told the publication. "Whether it's right or wrong, we have to follow the rules."



The Android Market Developer Distribution Agreement states: "All fees received by Developers for Products distributed via the Market must be processed by the Market's Payment Processor." A payment processor is defined as "any party authorized by Google to provide payment processing services that enable Developers with optional Payment Accounts to charge Device users for Products distributed via the Market."



Though the policy has been described by some as an effort to simplify the consumer payment experience, others view it as an unfair advantage for Google's in-house service, especially since Google Wallet takes a higher cut than some of its competitors. Google's share usually amounts to 30 percent, the same as Apple's take for the App Store.



The enforcement of Google Wallet as the exclusive Android payment solution is the latest in a series of decisions that have tightened restrictions for the mobile operating system, a marked difference from the platform's early days when it was less regulated. Some have taken the new strictures to be a concession by Google that Apple's more closed ecosystem is the better alternative. The Mountain View, Calif., company's recent efforts to rebrand its Android Market under an umbrella Google Play storefront that includes its digital music and book stores has drawn comparisons to Apple's iTunes branding.











Apple itself faced criticism last year for a policy banning links to out-of-app purchases. The company insisted that it was only fair that it earn its 30 percent share if it brought new subscribers to an app.



"On Android it used to be laissez faire - you could use any payment provider you liked," said Todd Hooper, chief executive of Zipline Games. "It's probably naive of developers to think they could keep choosing different payment providers."



Developer Bionic Panda Games' Charles Hudson said Apple's App Store has seen higher conversion rates because the company locked app makers into its own payment system from the start. "Every single developer is using the Apple payment system," he said. "Google sees the benefits that provides for the Apple platform and wants to create a similar system."



The Google Wallet service was not available when Bionic Panda began selling on the Android Market a year ago, but the company did switch to it last spring.



Google has struggled in creating as profitable an app ecosystem as Apple's App Store. Android platform manager Eric Chu said early last year that Google was "not happy" with the number of paid apps being download on its platform. According to one analysis late last year, the Android Market had brought in just 7 percent of the gross revenue of the App Store. A separate study found that iOS apps make 300 percent more revenue than their Android counterparts.



The search giant announced late last month that its app market had reached 450,000 apps, even as daily Android device activations have reached 850,000 handsets a day.



Apple announced in January that it had paid $4 billion to App Store developers since the digital storefront opened. The company recently touted the creation of 210,000 "iOS app economy jobs" as a result of the App Store. Apple also celebrated its 25 billionth application download on the App Store earlier this month, awarding a $10,000 iTunes gift card to a customer in Qingdao, China whose "Where's My Water?" download marked the milestone.









[ View article on AppleInsider ]

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Comments

  • solipsismxsolipsismx Posts: 19,566member
    I'm all for this. Their store, their rules.
  • tallest skiltallest skil Posts: 40,389member
    Quote:

    A new report claims Google has been threatening developers that it will remove from its Google Play app market Android apps that eschew its Google Wallet payment service in favor of third-party options.



    Apple is stifling developers! How dare Apple demand people not put links to outside stores or non-Apple payment services in their apps! Who do they think they are?!
  • igorleandroigorleandro Posts: 36member
    HAHAHA



    Open market



    HAHAHA



    Open OS



    HAHAHA



    Open Business model...



    HAHAHA



    Open BS...



    Every step they make looks towards the Apple model...
  • suddenly newtonsuddenly newton Posts: 13,093member
    I wouldn't characterize this as "Google threatening", but more accurately as "Google enforcing rules" in their Android store. But what's really interesting is that they aren't enforcing rules to protect users from bad experiences (say, viruses and malware), but simply making sure that payments go through their system. I don't know what to make of that other than concluding that Google really wants to collect all kinds of data from users and to find new ways to make money off that data.
  • openmindedopenminded Posts: 20member
    A new report CLAIMS. Let's not try and pawn this off as the truth AI, like you usually do, pushing your anti-Google propaganda.
  • iqatedoiqatedo Posts: 1,411member
    Quote:
    Originally Posted by igorleandro View Post


    HAHAHA



    Open market



    HAHAHA



    Open OS



    HAHAHA



    Open Business model...



    HAHAHA



    Open BS...



    Every step they make looks towards the Apple model...



    Yes, A.I. obviously misconstrued this. Android is all lovey, dovey open and all. \



    Quote:
    Originally Posted by Suddenly Newton View Post


    I wouldn't characterize this as "Google threatening", but more accurately as "Google enforcing rules" in their Android store. But what's really interesting is that they aren't enforcing rules to protect users from bad experiences (say, viruses and malware), but simply making sure that payments go through their system. I don't know what to make of that other than concluding that Google really wants to collect all kinds of data from users and to find new ways to make money off that data.



    Oh, okay, now I understand, Android is still open and all. Thanks for the clarification. (Why should anyone stop me catching a virus that I am determined to catch!)
  • nasseraenasserae Posts: 3,144member
    Quote:
    Originally Posted by SolipsismX View Post


    I'm all for this. There store, there rules.



    How long do you think before they declare our OS and our hardware?
  • gkroegergkroeger Posts: 7member
    Quote:
    Originally Posted by SolipsismX View Post


    I'm all for this. There store, there rules.



    Their, their.
  • tallest skiltallest skil Posts: 40,389member
    Quote:
    Originally Posted by gkroeger View Post


    Their, their.



    Nice of you to comfort him.
  • Quote:
    Originally Posted by AppleInsider View Post


    A new report claims Google has been threatening developers that it will remove from its Google Play app market Android apps that eschew its Google Wallet payment service in favor of third-party option.



    Only an evil company would pull an app due to the developer wanting to get all the revenue from in-app purchases.
  • solipsismxsolipsismx Posts: 19,566member
    Quote:
    Originally Posted by gkroeger View Post


    Their, their.



    Would you believe I was pointing at their store and rules when I wrote that?
  • ronboronbo Posts: 669member
    Quote:
    Originally Posted by openminded View Post


    A new report CLAIMS. Let's not try and pawn this off as the truth AI, like you usually do, pushing your anti-Google propaganda.



    In other words, you're saying that Google isn't doing this? Because otherwise, your criticism is simply that you don't like the choice of words.
  • ronboronbo Posts: 669member
    Quote:
    Originally Posted by SolipsismX View Post


    I'm all for this. There store, there rules.



    Quote:
    Originally Posted by gkroeger View Post


    Their, their.



    Quote:
    Originally Posted by SolipsismX View Post


    Would you believe I was pointing at their store and rules when I wrote that?



    That's certainly how *I* read it.
  • zbarskyzbarsky Posts: 19member
    Yes, the famous open Google model at it's best; nothing they do is wrong and where anything goes, including your privacy and data to the advertisers......
  • elrothelroth Posts: 1,201member
    Quote:
    Originally Posted by openminded View Post


    A new report CLAIMS. Let's not try and pawn this off as the truth AI, like you usually do, pushing your anti-Google propaganda.



    You do realize that this story is from Reuters, who interviewed several (unnamed) developers, don't you? I guess you don't care to research anything, you just bash away.
  • mstonemstone Posts: 11,510member
    Google strategy = fly by seat of pants



    So far only a couple asleep in the cockpit incidents, a few near miss mid air events, a number of landing gear failures, and a dreadful on time record. Other than that everything is going precisely according to plan.
  • cpsrocpsro Posts: 2,099member
    Perhaps Google should rename it "Google Business." They're not playing around, after all!
  • openmindedopenminded Posts: 20member
    Quote:
    Originally Posted by Ronbo View Post


    In other words, you're saying that Google isn't doing this? Because otherwise, your criticism is simply that you don't like the choice of words.



    Just saying that until there is definitive proof that they are doing this and it's not just a random report claiming it to be the truth, only then should AI post this article. Otherwise it just comes off as anti-Google propaganda.
  • openmindedopenminded Posts: 20member
    Quote:
    Originally Posted by elroth View Post


    You do realize that this story is from Reuters, who interviewed several (unnamed) developers, don't you? I guess you don't care to research anything, you just bash away.



    You think it would be the first time a company has put out reports in favor of certain companies? Companies and the employees that work within them make millions off of scams like that. paying people off to spew bulls**t.
  • absolutedesignzabsolutedesignz Posts: 1,930member
    Quote:
    Originally Posted by igorleandro View Post


    HAHAHA



    Open market




    Damn I can'tdownload Amazon App Store, the upcoming CM App store or any other app store now? Damn...oh wait, I can? oh...so you had no actual point



    Quote:

    HAHAHA



    Open OS



    Let's have a race....you download iOS source code and I'll download Android source code...ready?



    The OS is still open. Think better.



    Quote:

    HAHAHA



    Open Business model...



    You're gonna need to elaborate here....



    Quote:

    HAHAHA



    Open BS...



    Every step they make looks towards the Apple model...



    Didn't know I could sideload apps in stock iOS and install alternative stores...thanks for the input.



    Also...what exactly is wrong with this anyways?
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