Spotify's Deal with Google to Avoid Play Store Fees
During Google's legal battle with Epic Games, an interesting agreement between Google and Spotify was revealed. Don Harrison, Google's executive responsible for international partnerships, testified that Spotify had struck a generous deal with Google. Under this agreement, Spotify did not have to pay any commission to Google for users who paid their subscription fees using Spotify's own payment method. For users who made purchases using Google's payment method, the commission paid was only 4%.
Google's Privileges for Spotify
According to Harrison, Spotify's popularity was deemed "unprecedented" and Google believed that it was crucial for Spotify to work seamlessly within the Android ecosystem. As a result, Google granted Spotify certain privileges to ensure its smooth operation. This decision was made to prevent users from considering a switch away from Android.
Spotify's Criticism of Commission Rates
Spotify has been a vocal critic of app store commission rates, particularly in the case involving Apple and Epic Games. The company has accused Apple of monopolizing the market. In fact, a few months ago, Spotify made a bold move to stop accepting payments through the App Store in an effort to avoid paying commissions to Apple.
Overall, while the issue of app store commissions remains a topic of debate, it appears that Google has shown favoritism towards Spotify by offering a more lenient commission structure. This highlights the ongoing competition and power dynamics between app developers and the major app stores.
