Spotify Has A Special Deal With Google On The Play Store Commission: Report،
An ongoing lawsuit against Alphabet Inc. by Epic Games over App Store purchase fees has revealed that Google allowed Spotify Technology, the company behind the popular music streaming platform, to avoid paying commission fees . Although Google tried to keep the numbers confidential, head of global partnerships Don Harrison had to reveal them at its booth.
Here’s how much Spotify pays for in-app purchases
The new testimony reveals that Spotify does not pay any commissions when users purchase subscriptions through the platform. On the other hand, if users choose to complete the transaction through Google, the company charges a four percent commission. In comparison, the common commission percentage is 15 percent. Previously, Google confirmed that it was offering Spotify a better deal on Play Store fees, but it wasn’t ready to reveal the exact percentage.
Google took Spotify’s popularity into account for the special offer
Harrison also says Spotify’s popularity allowed the platform to strike a deal on fees. He also mentions that if Google doesn’t make Spotify work properly through Play Services, people won’t buy Android phones. Given that there are many other music streaming platforms, including Amazon Music, Pandora, and even YouTube Music, this statement does not reflect the best of Google.
According to an acknowledgment of the statement received by The Verge, a small group of developers may have different service fees “as part of a larger partnership that includes substantial financial investments.” These partnerships allow Google to attract more users to Android and subsequently explore more apps on the Google Play Store, which could offset the discount in the long run.
This strengthens Epic Games’ argument in the lawsuit
In the past, Spotify has complained about App Store commission fees. In fact, he was part of the Coalition for App Fairness, a group that included Epic Games. Additionally, facts about how Google negotiates different rates for developers and how the company, in the past, tried to acquire a huge stake in Fortnite’s creator could strengthen Epic Games’ argument .
You can follow Smartprix on Twitter, Facebook, Instagram and Google News. Visit smartprix.com for the latest news, reviews and technical guides.
