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Spotify rolls out third-party billing in 140+ markets

Today, the company confirmed that it has made significant progress in rolling out the program.

In its fourth-quarter earnings report, Spotify announced today that its User Choice Billing program has now expanded to more than 140 markets worldwide, allowing the streaming music service to reduce the fees it pays Google for Play Store purchases. The User Choice Billing pilot program gives Android users the ability to directly pay the app developer. It was introduced last spring and Spotify was planned as one of the original testers. But neither company shared updates on the progress of the program until last November, when it announced that Spotify would begin rolling out third-party payments in select markets.

At the time, Spotify said the program would only be available in a few markets and then rolled out to more in the “coming weeks”. The company did not say in which markets the third-party billing option would be available or when the choice is expected to reach all users of the Android app.

Today, the company confirmed that it has made significant progress in rolling out the program. As part of its earnings report (the company surpassed user growth targets with 205 million paying subscribers), Spotify revealed that User Choice Billing became available to users in “10+ markets” in November. And over the next few months, the program expanded to more than 140 markets around the world.

However, Spotify has yet to release a detailed list of countries where the program is offered, but told TechCrunch that it expects the option to be rolled out “in every market” where Spotify Premium is offered today and where Google Play Billing is available. According to the company’s website, Spotify Premium subscribers can currently be found in 184 global markets.

Spotify rolls out third-party billing in 140+ markets

It’s no surprise that Google chose Spotify as the first tester for its new billing, given that the music streaming service has long been a vocal critic of the app store, sharing its commission complaints with the US Department of Justice and EU regulators. Presumably Google is hoping that if a voice as outspoken as Spotify can be appeased by lowering in-app purchase fees, it could allay concerns about its alleged abuses of market power, which are now under investigation.

Developers participating in the third-party billing program must follow certain guidelines set by Google that detail how to implement this feature in their apps. These guidelines currently require developers to display an information screen and a separate payment selection screen. The information screen should only be shown to each user on the first purchase, and the payment selection screen should be shown before each purchase.

While the general terms offer a 4 percentage point reduction in commissions, Spotify has not commented on its confidential deal with Google, only noting that it meets the company’s “honesty standards”. It’s unclear if the streamer was offered better terms as an early tester.

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