Recent testimony in the Epic v. Google trial revealed that Spotify has a secret deal with Google allowing it to avoid paying the usual commission for subscription sign-ups using its own payment system on Android. This deal required Spotify to pay Google only four percent commission for sign-ups through Google, which is significantly less than the 15 percent usually charged for subscriptions through the Google Play Store.
According to The Verge, Google’s partnerships head Don Harrison stated in court that “Listening to music is one of [the phone’s] core purposes… if we don’t have Spotify working properly across Play services and core services, people will not buy Android phones.” Both companies also agreed to contribute $50 million each to a “success fund” as part of the deal.
The ongoing lawsuit filed against Google by Epic Games in 2020 claimed that the Google Play Store on Android was an illegal monopoly, forcing app makers to pay hefty fees in exchange for offering in-app purchases through the store. Google spokesperson Dan Jackson defended the special deals, stating that “key investment partnerships allow us to bring more users to Android and Play by continuously improving the experience for all users and create new opportunities for all developers.”
Despite Spotify’s initial support for Epic’s lawsuit, the music streaming service began using Google’s User Choice Billing program in 2022, which allowed Android apps to use their payment systems in exchange for a reduced cut to Google. This move revealed Google’s willingness to make exceptions for popular apps like Spotify.
In addition, it has been revealed that Google pays Apple 36 percent of all ad revenue generated through Apple’s Safari browser, as confirmed by Alphabet CEO Sundar Pichai during the Epic v. Google trial. The company also made a custom offer to Netflix, another popular streaming service, with a reduced commission of 10 percent, which Netflix declined.
Update, November 20, 2023, 6:50PM ET: This story was updated with a statement from Google.
