A senior Google executive admitted that the company has entered into a particular agreement with Spotify during testimony in the trial Epic vs Googleto be able to access the Play Store without commissions.
Google and Spotify, special agreement to avoid Play Store commissions
According to reports from The VergeDon Harrison, head of partnerships at Google, revealed that Spotify evades the tariffs of Play Store thanks to a special agreement with the technology company. The manager specified that Spotify is not subject to commissions for its payments and only pays a minimum commission of 4% when Google processes payments. This statement comes after Google tried to ask to keep this agreement secret, which the court rejected.
Under normal conditions, Google charges a fee of 15% on subscription apps on the Play Store. However, this fee can be reduced up to11% thanks to programs like the billing chosen by the user. This program allows developers to use their own or third-party payment solutions, thus reducing transaction fees.
Ma And Jacksona Google spokesperson, clarified that some developers, especially those who invest directly in Android and Play, can benefit from di different service fees as part of larger partnerships cwhich involve significant financial investments and product integrations across different devices.
The investigation revealed that Google has attempted similar deals with other major companies. Included Netflix in 2017, offering a reduced commission of 10% for subscriptions on Play Store. However, Netflix currently does not allow users to purchase subscriptions through the Android app. For Spotify, however, it seems that the agreement has been reached.
What impact will this have on the process
The ongoing process, started by Epic which rejected Google’s offers to adopt user-chosen billing, has brought to light various details about the inner workings of the Google Play Store. For example, in 2021, Google proposed a Epic to bring Fortnite on the Play Store offering well 197 million dollars, an offer that was declined. Additionally, Google has sought multimillion-dollar deals with other big gaming names like Activision Blizzard e Riot Games the Tencent.
This testimony in the trial Epic vs Google highlighted the complexity of relationships between tech giants and app developers. And it raised further questions about the commissions’ policies Play Store and the ongoing trade negotiations in today’s digital landscape. But at the moment, it is difficult to understand what weight it may have on the final judgment.