Epic against Google to protect Bandcamp and third party payment systems

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Epic Games he is suing Google for avoid removing Bandcamp from the Android app store. The Mountain View house is preparing to do it because Bandcamp uses its own payment system and not the native one of the Play Store which implies the developer’s obligation to pay commissions. To understand the story it should be remembered that:

  • Epic Games acquired Bandcamp last March
  • Bandcamp allows you to buy music (also) through the Android app. Important note (for the reasons that will be mentioned shortly): the purchased music tracks can also be played in music players other than those of Bandcamp.
  • Bandcamp has used its payment system since 2015 and has been able to do so because the PlayStore rules have provided for a exception the obligation to use native Play Store billing for payments for digital content that can also be used outside the app itself such as the aforementioned music tracks (which is why other streaming apps that bind the user to use the in-app content have not had the opportunity to use their own payment system, net of the recently announced news).

FROM 1st JUNE NEW RULES AND BANDCAMP MASTICA AMARO

Now Google is changing the rules by imposing the obligation to use only Play Store billing, as Bandcamp CEO and co-founder Ethan Diamond explains:

However, Google is now changing its rules to ask Bandcamp (and other similar apps) to use Google Play Billing exclusively for payments for digital goods and services and to pay Google a revenue share.

Bandcamp’s Android app is in danger of being banned from the Play Store

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Under the new rules Bandcamp should adapt starting from 1 June next, with scenarios that are not very encouraging in all cases. To bear the economic burden of commissions to be paid to Google, the Company would be forced to pass it on to end users, artists or continue selling music through the loss-making Android app. The alternative to avoid being excluded from the Play Store would be to deactivate the sales features from the app, leaving the others unchanged, but becoming something very different from what it is now.

Epic Games points out that if forced to adapt to the new rules, Bandcamp would no longer be able to pass 82% of the revenue to the artists. All this despite the fees applied by Google are also lower than the standard ones based, it seems, to a special treatment reserved by the Mountain View house to the app managers. There is talk of 10% commissions compared to the standard ones equal to 15% and 30% depending on the case. Epic Games says:

Paying Google even a 10% revenue share would force Epic to either change Bandcamp’s current business model or run Bandcamp’s business at a long-term loss.

Not only that, Bandcamp highlights that the new rules could lead to a delay in artists’ payments who sell music through Bandcamp because while the current system allows you to transfer the sums to them within 24-48 hours of sale, billing through Google Play means that the sums are sent to the developer 15 to 45 days after the sale.

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The reasons given by Epic at least on paper are convincing, to be evaluated as much as they will also be for the judge. Finally, one wonders if Epic is actually taking action only to protect Bandcamp or if the legal action has also been initiated to feed the other two lawsuits, again on the subject of third-party payment systems and commissions, which Epic brings forward against Google and Apple.