Google and Amazon

Amazon vs Google: New Payment Changes To Affect Android Users

One of the most used apps on an Android device is the Amazon app, whether you are looking for fast delivery for a last minute purchase, a quick and convenient way of getting your weekly groceries in without having to leave your home, or simply downloading a kindle or audiobook to pass away some time.

Today a spanner has been thrown in the works after Amazon have made changes to their Android app, particularly how shoppers can download eBooks, and digital content following a spat with Google, read on to understand the Amazon Android payment changes.

Amazon Android Payment Changes on Google

Apple and Google both charge a commission to selected companies for any in-app purchases made, and when it comes to the likes of Amazon, it’s a 30% charge, after Google implemented a new policy last month where companies who turnover more than £800,000 get the hit.

Today, Amazon have decided to take a stand on Google’s new payment policy, and in order to download any digital content – they will now redirect you from the app back to the website to avoid the commission charge set out by Google. (They implemented this same policy to Apple a while back).

By taking people back to the site, it means they won’t have to pay the 30% and get the full return from a purchased item.

How Will The Move Affect Amazon?

This move from Amazon, comes at a time where they have seen sales decline for the first time since 2015, and off the back of the impressive surge they experienced in recent years when people were working from home and under COVID-19 lockdown rules.

This could be both Amazon taking a stand, or/and reclaiming some revenue after a bumpy April.

For now it is purely just digital content, but it will be interesting to see how Google respond to this or if Amazon slowly pull back other services from the app and how that will affect users.

Despite having to navigate away from the app and download content on the website, users can still stream the content through the Amazon apps.

It’s not the first time Amazon have kicked up a fuss over fees, you may remember 6 months ago they planned to block UK Visa credit card payments, but then stalled plans.

How Will The Move Affect Google?

Taking 30% from each in-app sale will increase Google’s turnover, as Amazon aren’t the only ‘over £800,000’ company with an app. However, with enough backlash from the unfair fees, they could suddenly find themselves in a sticky situation if these giants start pulling back and sending users to their websites instead of the app.

Today’s public news, will only prompt other Android app businesses to consider their options, and make a decision on whether they also take a similar stance to Amazon.


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