In the ongoing Epic vs. Google antitrust case, it has been revealed that Google entered into a special arrangement with Spotify, allowing the music streaming platform to bypass the usual commission fees on the Play Store. Google’s head of global partnerships, Don Harrison, disclosed that as part of this deal, Spotify paid no commission when users purchased Premium subscriptions through its payment system. However, if a user opted for Google’s payment system, Spotify incurred a 4% commission, significantly lower than Google’s standard 15% fee.
In response to inquiries from the judge overseeing the trial, Google expressed reluctance to disclose details of the Spotify deal, citing potential harm to negotiations with other parties. Harrison defended the special arrangement, highlighting the significance of having Spotify seamlessly integrated across Google’s services for the success of Android phones.
Additionally, it was revealed that Google and Spotify agreed to jointly invest $50 million in a ‘success fund.’ This fund is commonly used to support the development and success of specific projects or partnerships.
Google’s User Choice Billing program, introduced last year, typically charges a 15% commission for payments made through the Play Store. Developers can opt for their payment platform, receiving a 4% discount, effectively reducing the commission to around 11%. However, Google’s VP of Play partnerships acknowledged that, regardless of the billing choice, developers often end up paying the same amount.
When questioned about similar arrangements with other companies, Google declined to provide further details. Recent revelations indicated that Google had offered Netflix a 10% discount, which the streaming platform rejected, leading to the inability of Netflix users to purchase memberships on Android devices.
While Spotify has secured a special deal with Google, the music streaming platform has been a vocal critic of Play Store commission fees. Previously, Spotify opted out of Apple’s App Store billing system to avoid fees, and it was also part of the Coalition for App Fairness, a group that included Epic Games, the maker of Fortnite.
