Solution 1:

This goes way back. From the Online Ety. Dict.:

1807, from Fr. utiliser, from It. utilizzare, from utile "usable," from L. utilis "usable," from uti (see use (v.)).

It's used in the sense of "to make profitable use of," as opposed to the bare "use," which just means "to employ." There's a nuance there that speakers have found useful. The only error is the use of "utilize" when "use" alone would suffice.

Solution 2:

I don't think there's anything seriously wrong with utilize (utilise in UK, so forgive me if I revert to type).

But it is a little pompous (only a very little, honest). The main reason I personally wouldn't 100% endorse its use here is that utilise is (in principle, at least) a somewhat more precise word than use. It often implies a degree of creativity in making something be capable of being used in a way not originally intended, rather than simply using something designed for the purpose of being thus used.

The vendors’ unique policies are obviously designed for the very use to which they will be put, so I think utilise is a bit overdone - slightly tautological, actually.

Solution 3:

Well, I would turn it round: when there's a nice, short, plain, easily understood word that expresses what you want to say, I would suggest there's no need to use a long, psuedotechnical one instead just for the sake of it.

If you really feel that "utilise" conveys some extra/special meaning in the context in which you're using it, then fair enough. For example, in some contexts (but I think not this one), saying "utilise" rather than "use" may get across the notion of "making special use of something where it wouldn't usually be put to practical use". But if you're just trying to use a long word for the sake of it, then I would suggest that using clear, easy to understand language may be a more effective communication strategy.

The sentence you quote seems to be a classic case of somebody with poor writing skills attempting to sound impressive but in so doing they fail to see the wood for the trees in terms of getting their message across. They really could have just said "Each seller can define how they want to price their apps" and the message would have been to the point and easy to understand.