Google may be following an in-app purchase strategy similar to that of rival Apple. Visual VoiceMail developer PhoneFusion claims its app was removed from the Android Market for skirting Google Checkout and using a separate system to take in-app payments, though the search giant has yet to fully detail which terms of the developer payment rules were violated.
The free app represented one of the most popular titles in the Android Market, with over a million downloads. Users could pay for premium services such as fax numbers and voicemail transcriptions, however PhoneFusion routed customers to its own website for upgrades.
Google cited Section 3.3 of the Android Market Developer Distribution Agreement as the source of the problem, according to a GigaOM report. Among other items, the section includes an explicit requirement that "all fees received by developers for products distributed via the Market must be processed by the Market's Payment Processor."
“There was no warning that they’re going to enforce this, which make it worse than Apple," said PhoneFusion executive VP Jonathan Hollander. "Even if you disagree with Apple, they gave until June to remove their apps. Here, there’s no choice.”
Apple recently changed its rules to close the loophole that had allowed many developers to use their own payment systems for in-app purchases. The move was met with criticism from a variety of developers, with particular frustration from companies that have created apps integrating third-party services with separate subscriptions. The DoJ and FTC are said to beconsidering an investigation over antitrust claims.
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