Spotify Has A Special Deal With Google On The Play Store Commission: Report

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An ongoing Epic Games lawsuit against Alphabet Inc. regarding the app store fees for purchases has revealed that Google allows Spotify Technology, the company behind the popular music streaming platform, to avoid paying the commission fees. Although Google tried to keep the numbers private, the head of global partnerships, Don Harrison, had to reveal them on the stand.

Here’s How Much Spotify Pays For In-App Purchases

The new testimony reveals that Spotify pays zero percent commission when users buy subscriptions through the platform. On the other hand, if users choose to perform the transaction via Google, the company charges a four percent commission. In comparison, the common commission percentage is 15 percent. Previously, Google confirmed that it gave Spotify a better deal on the Play Store fees, but it wasn’t ready to reveal the exact percentage.

Google Considered Spotify’s Popularity For The Special Deal

Harrison also says that Spotify’s popularity got the platform a deal on the fees. He also mentions that if Google doesn’t have Spotify working properly through Play Services, people won’t buy Android phones. Given that there are plenty of other music streaming platforms, including Amazon Music, Pandora, and even YouTube Music, the statement doesn’t reflect the best of Google.

According to an acknowledgment of the statement received by The Verge, a small pool of developers may have different service fees “as part of a broader partnership that includes substantial financial investments.” These partnerships enable Google to bring more users to Android and, subsequently, explore more apps on the Google Play store, which could compensate for the rebate in the long run.

This Strengthens Epic Games’ Argument In The Lawsuit

Epic Games available on Android

In the past, Spotify has complained about the app store commission fees. In fact, it was a part of the Coalition for App Fairness, a group that included Epic Games. Moreover, facts about how Google negotiates different rates for developers and how the company, in the past, has tried to acquire a huge stake in Fortnite’s creator could strengthen Epic Games’ argument.

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Shikhar MehrotraShikhar Mehrotra
A tech enthusiast at heart, Shikhar Mehrotra has been writing news since college for an undergraduate degree in Journalism and Mass Communication. Over the last four years, he has worked with several national and international publications, including Republic World, and ScreenRant, writing news, how-to explainers, smartphone comparisons, reviews, and list-type articles. When he is not working, Shikhar likes to click pictures, make videos for his YouTube channel, and watch the American sitcom Friends.

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