According to reports, Spotify and Google made a special agreement that allowed it to avoid paying Play Store fees.

According to reports, Spotify and Google made a special agreement that allowed it to avoid paying Play Store fees.

1 minute, 51 seconds Read

Pranav Dixit

According to new testimony in the ongoing Epic v. Google trial, which was first reported by The Verge, Spotify and Google have a special agreement that allows them to pay no commission to Google when users sign up for subscriptions using the music streaming service’s own payment system on Android. Similar to most other apps, which typically charge 15 % for subscriptions through the Google Play Store, Spotify only paid Google a 4 % commission when users signed up for the service through Google.

People will not purchase Android phones if Spotify does n’t function properly across Play services and core services, according to Don Harrison, head of Google’s partnerships, who reportedly stated in court that “listening to music is one of the phones ‘ core purposes.” Additionally, as part of the agreement, Google and Spotify each agreed to contribute$ 50 million to a” success fund.”

The comments were made in response to a lawsuit Epic Games, the creator of the wildly popular Fortnite, first brought against Google in 2020. According to Epic, Google’s Play Store on Android was a monopoly that required app developers to pay enormous sums of money in exchange for allowing users to make in-app purchases there. Similar legal action was taken by Epic against Apple in 2021, but it was unsuccessful.

In its initial battle with Google and Apple, Spotify backed Epic. However, in 2022, the business began utilizing User Choice Billing, a Google program that gave the company an advantage over Google in exchange for allowing Android apps to use their own payment methods. Google was willing to make even more exceptions for well-known apps like Spotify, as evidenced by the special agreement that was made public in court.

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In the past few days, Google has revealed a number of significant business secrets. Alphabet CEO Sundar Pichai later confirmed this information while testifying in the Epic v. Google trial. Last week, an economics professor testified on behalf of the company in a separate antitrust trial that has since concluded.

Another well-known streaming service, Netflix, was also given a custom deal by Google, according to The Verge earlier this month. Netflix declined the 10 % commission that was offered, opting instead to deny users the option to sign up for Netflix directly through its Android app.

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