Music streaming service Spotify struck a seemingly distinctive and extremely beneficiant cope with Google for Android-based funds, in keeping with new testimony within the Epic v. Google trial. On the stand, Google head of worldwide partnerships Don Harrison confirmed Spotify paid a 0 % fee when customers selected to purchase subscriptions via Spotify’s personal system. If the customers picked Google as their fee processor, Spotify handed over 4 % — dramatically lower than Google’s extra widespread 15 % charge.
Google fought to maintain the Spotify numbers non-public throughout its antitrust combat with Epic, saying they may harm negotiations with different app builders who would possibly need extra beneficiant charges. Google’s Consumer Alternative Billing program, launched in 2022, is often described as shaving about 4 % off Google’s Play Retailer fee if builders use their very own fee system, bringing down Google’s 15 % subscription service charge to extra like 11 %. That usually finally ends up saving builders little or no cash since they have to foot the price of fee processing themselves. And in court docket, Google has centered on advantages like higher flexibility somewhat than price financial savings.
However Harrison says Spotify’s “unprecedented” recognition was nice sufficient to justify a “bespoke” deal. “If we don’t have Spotify working correctly throughout Play providers and core providers, folks won’t purchase Android telephones,” Harrison testified. As a part of the deal, each events additionally agreed to commit $50 million apiece to a “success fund.”
Google acknowledged Harrison’s testimony in a press release to The Verge. “A small variety of builders that make investments extra straight in Android and Play might have completely different service charges as a part of a broader partnership that features substantial monetary investments and product integrations throughout completely different type elements,” says spokesperson Dan Jackson. “These key funding partnerships enable us to carry extra customers to Android and Play by repeatedly bettering the expertise for all customers and create new alternatives for all builders.”
Spotify has complained often about in-app buy charges up to now. In mid-2023, it utterly dropped help for Apple’s App Retailer billing system to keep away from paying as much as a 30 % fee, and it was one of many highest-profile early members of the Coalition for App Equity, a gaggle that included Epic and supported the Fortnite writer’s antitrust swimsuit in opposition to Apple and Google. However whereas Epic has continued its authorized battle in opposition to each events, Spotify apparently discovered a neater — and much cheaper — approach out of the Google combat.
