Music streaming service Spotify has struck an apparently distinctive and intensely beneficiant cope with Google for Android-based funds, in keeping with new testimony from Epic v. Google trial. On the sales space, Google’s head of world partnerships, Don Harrison, confirmed that Spotify paid a zero% fee when customers selected to purchase subscriptions via Spotify’s personal system. If customers selected Google as their cost processor, Spotify handed over four% — far lower than Google’s extra widespread 15% charge.
Google has fought to maintain Spotify’s numbers personal throughout its antitrust battle with Epic, saying it may harm negotiations with different app builders who would possibly need extra beneficiant charges. Google’s Consumer Selection Billing program, launched in 2022, is usually described as chopping about four% of the Google Play Retailer charge if builders use their very own cost system, decreasing Google’s 15% subscription service charge to greater than 11% . This typically finally ends up saving builders little or no cash, as they should bear the price of processing funds themselves. And in court docket, Google targeted on advantages like better flexibility slightly than price financial savings.
However Harrison says Spotify’s “unprecedented” reputation was sufficiently big to justify a “bespoke” deal. “If we do not have Spotify working correctly in Play providers and core providers, folks will not purchase Android telephones,” Harrison testified. As a part of the settlement, each side additionally agreed to commit $50 million every to a “success fund.”
Google acknowledged Harrison’s testimony in a press release to The Verge. “A small variety of builders investing extra straight in Android and Play could have completely different service charges as half of a bigger partnership that features substantial monetary funding and product integrations throughout completely different kind 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 creating new alternatives for all builders.”
Spotify has often complained about in-app buy charges up to now. In mid-2023, it fully dropped help for Apple’s App Retailer billing system to keep away from paying a charge of as much as 30%, and was one of many first high-profile members of the Coalition for App Equity, a bunch which included Epic and supported the Fortnite writer’s antitrust lawsuit towards Apple and Google. However whereas Epic continued its authorized battle towards each side, Spotify apparently discovered a better – and less expensive – method out of the Google combat.