A secret Google deal let Spotify completely bypass Android’s app store fees
A secret Google deal let Spotify completely bypass Android’s app store fees
Spotify’s “unprecedented” popularity justified the deal.
Google fought to keep the Spotify numbers private during its antitrust fight with Epic, saying they could damage negotiations with other app developers who might want more generous rates. Google’s User Choice Billing program, launched in 2022, is typically described as shaving about 4 percent off Google’s Play Store commission if developers use their own payment system, bringing down Google’s 15 percent subscription service fee to more like 11 percent.
That often ends up saving developers little or no money since they must foot the cost of payment processing themselves. And in court, Google has focused on benefits like greater flexibility rather than cost savings.
Aint it like an open secret at this point?
Google lost plausible deniability.
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Google fought to keep the Spotify numbers private during its antitrust fight with Epic, saying they could damage negotiations with other app developers who might want more generous rates.
And in court, Google has focused on benefits like greater flexibility rather than cost savings.
As part of the deal, both parties also agreed to commit $50 million apiece to a “success fund.”
“A small number of developers that invest more directly in Android and Play may have different service fees as part of a broader partnership that includes substantial financial investments and product integrations across different form factors,” says spokesperson Dan Jackson.
In mid-2023, it completely dropped support for Apple’s App Store billing system to avoid paying up to a 30 percent commission, and it was one of the highest-profile early members of the Coalition for App Fairness, a group that included Epic and supported the Fortnite publisher’s antitrust suit against Apple and Google.
But while Epic has continued its legal battle against both parties, Spotify apparently found an easier — and far cheaper — way out of the Google fight.
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