Google Confirms Spotify Pays No Play Store Fees Due to a Confidential Agreement

This comes as a Google executive testified in the Epic versus Google trial, explaining that a deal with Spotify enables the audio company to avoid all fees charged by Play Store, according to report from The Verge.
Google Confirms Spotify Pays No Play Store Fees Due to a Confidential Agreement

This comes as a Google executive testified in the Epic versus Google trial, explaining that a deal with Spotify enables the audio company to avoid all fees charged by Play Store, according to report from The Verge.

According to the report, Don Harrison, Google's head of partnership said that Spotify pays no fees when it processes its own payments and pays a measly 4% fee when Google processes them, the publication noted. He also said that both companies have committed to put $50 million each in a "success fund.

The terms emerged today after Google asked a court to seal the details of its deal with Spotify earlier this month.

Google ordinarily takes a 15 percent cut of subscription apps. The fee would go lower to 11 percent because of programs such as user choice billing, which allows developers to make use of either their own or third-party payment methods.

A small number of developers that invest more directly in Android and Play may have different service fees as part of a broader partnership that includes significant financial investments and product integrations across different form factors. These key investment partnerships allow us to bring more users to Android and Play by continuously improving the experience for all users and creating new opportunities for all developers," said Google spokesperson Dan Jackson in a statement.

Google has attempted to replicate similar deals in Play Store with other major companies also. This month, the search giant had offered Netflix a deal back in 2017 for a mere 10% fee on Play Store for subscriptions. Netflix does not presently allow users to buy subscriptions through the Android app.

Last month, the Mountain View-based company settled on Match Group to let the dating app giant use third-party billing solutions on the Play Store. Match Group's rival Bumble was part of the user choice billing program pilot started in November 2022.

Epic, however, turned down Google's offer to accept user choice billing and took the case to trial earlier this month. During the trial, a lot has been revealed about how Google Play Store operates. For instance, the company attempted to pay Epic a sum of $197 million in 2021 to bring Fortnite to the Play Store, but Epic rejected it. Google on its part has attempted to enter into deals worth several millions of dollars with other game makers such as Activision Blizzard and Tencent's Riot Games.

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2024-11-25 18:24:43