The http://www.android.com/market/terms/developer-content-policy.html
states:

"Developers should only charge for applications and downloads from
Android Market through the Market's Payment Processor. Developers may
offer free applications as access points to paid services for which
customers have registered and provided payment information. This
should not be used as an alternative means to the Android Market
Payment Processor to collect payment for usage of applications. "

This is on my company's roadmap, so I'm curious how you came to the
conclusion that this is not allowed.

You'll just have to find a different payment processor to do your paid
services, and it shouldn't be hard to find one that will do
subscriptions.  You just need to be careful about separating the
payment between the services and the android application.  Such that
if you offer the android app for free - you can never charge for the
android app, only the data & services it consumes.








On Feb 19, 8:30 am, Al Sutton <a...@funkyandroid.com> wrote:
> Well, after a meeting of the directors, my company has just decided to
> shelve a project that was in development due to the short commings of
> Market and it's T&Cs.
>
> The project was going to offer a subscription service and would have met
> the all the criteria for being listed on Market, but Market clearly
> can't handle subscription services. We considered the
> app-per-subscription period approach but that would mean that Google
> would have a claim to 30% of all subscription fees and because the
> subscription fees were planned to be less than $10 per billing period
> Google would also have the right to refund a users subscription fee at
> any time without consulting us.
>
> So I'd be interested to know who else is in this boat because I think
> it's something that Google need to be made aware of so that can start
> addressing the problem.
>
> Al.
>
> --
> ======
> Funky Android Limited is registered in England & Wales with the
> company number  6741909. The registered head office is Kemp House,
> 152-160 City Road, London,  EC1V 2NX, UK.
>
> The views expressed in this email are those of the author and not
> necessarily those of Funky Android Limited, it's associates, or it's
> subsidiaries.
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