Spotify made a secret deal with Google to pay lower fees
During the lawsuit between Google and Epic Games, it became known that Google and Spotify signed a rather generous agreement under which the music streaming service pays a lower commission than other companies.
According to The Verge, Spotify paid 0% commission if users decided to pay through their internal system. If the payment was made through the Google payment system, the company paid only 4%.
For comparison, the usual commission for in-app payments in apps downloaded via Google Play is 15%.
As it became known during the process, in addition to Spotify, this offer works for several other companies, but for which ones is not disclosed.
“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. “These key investment partnerships allow us to bring more users to Android and Play by continuously improving the experience for all users and create new opportunities for all developers.”
It also became known that Google offered Netflix to reduce the commission to 10%. The company refused this offer and instead removed the ability to make internal payments on Android, thus not paying anything to Google at all.