![](https://www.pymnts.com/wp-content/uploads/2023/10/spotify.jpg)
In a surprising revelation during the ongoing Epic vs Google trial, a high-ranking Google executive disclosed that Spotify, the popular audio streaming service, pays no fees to the Play Store, thanks to a confidential agreement between the two tech giants. Don Harrison, Google’s Head of Partnership, testified that Spotify processes its own payments without incurring any charges and only pays a minimal 4% fee when Google handles the transactions, reported TechCrunch.
The disclosure sheds light on a behind-the-scenes deal that allows Spotify to navigate around the standard 15% cut that Google typically takes on subscription apps within the Play Store. Notably, this fee can be further reduced to 11% through programs like user choice billing, which permits developers to utilize their payment solutions or third-party platforms.
Harrison further revealed that as part of the undisclosed agreement, both Google and Spotify have committed to contributing $50 million each to a “success fund.” The purpose and details of this fund remain confidential, raising questions about the extent of the partnership between the two companies.
Related: Google Play Allows Spotify To Use Third-Party Payments
Google’s move to keep the specifics of its deal with Spotify under wraps led to a recent court request for confidentiality. The tech giant argued that the sensitive nature of the arrangement warranted privacy protection, a request that was seemingly granted.
Responding to inquiries, Google spokesperson Dan Jackson stated, “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.”
This revelation comes on the heels of reports that Google has sought similar arrangements with other major companies. Earlier this month, it was reported that Google offered Netflix a deal in 2017, proposing a reduced 10% fee on the Play Store for subscriptions. However, Netflix, which currently doesn’t allow users to purchase subscriptions through its Android app, declined the offer.
In a recent settlement, Google agreed to allow the Match Group, the company behind popular dating apps, to utilize third-party billing solutions on the Play Store. This move follows the inclusion of Match Group’s rival, Bumble, in the user choice billing program pilot initiated in November 2022.
Source: Tech Crunch
Featured News
Italy’s Competition Watchdog Probes Armani and Dior Over Worker Exploitation Claims
Jul 17, 2024 by
CPI
EU’s AI Legislation: Protection or Innovation Stifler?
Jul 17, 2024 by
CPI
House Oversight Panel to Probe Pharmacy Benefit Managers’ Role in Rising Healthcare Costs
Jul 16, 2024 by
CPI
Spanish Train Maker Talgo Receives Merger Offer from Czech Rival Skoda
Jul 16, 2024 by
CPI
Yandex Finalizes $5.4 B Asset Split, Marking Major Corporate Exit and Birth of New AI Venture
Jul 16, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Private Equity Roll-Up Schemes
Jun 28, 2024 by
CPI
The FTC’s Focus on Private Equity is Warranted
Jun 28, 2024 by
CPI
Unraveling the Roll-Up: Private Equity’s Misunderstood Investment Strategy
Jun 28, 2024 by
CPI
Antitrust Focus on Private Equity Funds and Serial Acquisitions
Jun 28, 2024 by
CPI
Private Equity Roll-Ups Amidst Heightened Antitrust Enforcement
Jun 28, 2024 by
CPI