Spotify To Use Own Billing System

Google announced that it would let Spotify use its own billing system for users who subscribe to the music-streaming service through the Google Play Store. This means Spotify doesn't have to pay the hefty 15% levy as Google slowly opens up its app store, and is a step in the right direction in order to appease angry regulators. As a Spotify shareholder, I approve!

I do understand that Google has to be paid for spending billions of dollars building its app store but the lines get blurred when they create a competing product to Spotify. Google Music now has an advantage as it doesn't incur the same levies.

Spotify is not entirely off the hook. In South Korea, where lawmakers forced app stores to offer alternative payment services, Google still charges app developers 11% in fees. In the Netherlands, Apple responded to a regulatory order covering dating apps by allowing third-party payments but are still charging a 27% fee.

This move by Google puts a ton of pressure on Tim Cook to do something about fees in the Apple App Store. According to Sensor Tower, consumers spend over $85 billion there, compared to Google Play's $48 billion. The search giant's core business is advertising, this gambit makes them look good while throwing dirt at Apple. Let's see how Tim Cook responds.