Secret deal b/t Google & Spotify let music streaming company bypass PlayStore fees
In a secret deal between Google and Spotify, the music streaming service was able to bypass Play Store fees, paying only 4% in commission when users signed up for subscriptions using Spotify’s own payment system on Android. This deal was part of Google’s User Choice Billing program, which typically reduces the Play Store commission fee from 15% to around 11% for developers who use their own payment systems.
The partnership between Google and Spotify
The partnership between Google and Spotify was motivated by the belief that if Spotify did not function properly across Android’s core services and Play Store, users would not buy Android phones. As a result, both parties agreed to commit $50 million each to a “success fund” as part of the deal.
This arrangement is significant for Spotify
As it has faced complaints about in-app purchase fees in the past. In mid-2023, Spotify dropped support for Apple’s App Store billing system to avoid paying up to a 30% commission. Spotify was also one of the highest-profile early members of the Coalition for App Fairness, a group that supported Epic’s antitrust suit against Apple and Google.
The deal between Google and Spotify highlights the growing influence of app developers in negotiating favorable terms with tech giants, as well as the increasing scrutiny of app store policies and their impact on the broader tech industry.
Secret deal between Google & Spotify let music streaming company bypass PlayStore fees”:
- Firstpost: Secret deal between Google & Spotify let music streaming company bypass Play Store fees
- Indian Express: Google confirms Spotify pays zero commission fees as part of a secret deal
- Android Police: Google and Spotify’s secret 4% service fee goes public as antitrust trial rolls on
- Engadget: Spotify reportedly struck a special deal with Google that let it skip Play Store fees
These search provide information about the secret deal between Google and Spotify, which allowed Spotify to bypass Play Store fees. They also discuss the ongoing antitrust case between Epic and Google, which has brought these deals to light.