(Bloomberg) — Efforts in Washington to regulate mobile app markets aren’t likely to be stopped by Google’s decision to allow apps like Spotify to bill customers directly.
“Google’s recent concession does not change the fact that we need new laws that will create real competition online,” said House Antitrust subcommittee chair David Cicilline in a statement. “Self-regulation is not a solution.”
Cicilline’s subcommittee is behind a suite of tech-focused bills pending in Congress, such as the American Innovation and Choice Online Act, which prevents companies from favoring their services over others. The subcommittee also hosted Meta Platforms Inc. whistleblower Frances Haugen.
Both Alphabet Inc.’s Google and Apple Inc. have faced pressure from lawsuits and in Congress for requiring app makers to use their payments systems and pay fees that are generally 15% to 30% of the total purchase.
On Wednesday, Google said it would allow apps such as Spotify Technology SA’s streaming service bill users directly and avoid paying some fees to the phone-maker. The deal allows Spotify to pay less than the 15% fee on the Google Play store, a person familiar with the matter has said. A Google spokesperson said the terms have not been finalized.
“While this is a good deal for Spotify, it does nothing to help the millions of small businesses and entrepreneurs that are crushed by exorbitant app store fees,” Cicilline continued.
Separately, Congress is pushing to regulate app stores through the Open App Markets Act, which has the best chance of becoming law among bills aimed at reining in technology giants. Other major tech companies, such as Microsoft Corp., have lobbied in favor of the bill.
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