Google Confirms Spotify’s Special Deal to Avoid Play Store Fees
Key Details Emerge in Epic vs. Google Antitrust Case
New revelations in the ongoing Epic vs. Google antitrust trial have exposed a privileged arrangement between Google and Spotify that exempts the music streaming giant from standard Play Store fees.
The Secret Fee Structure
During courtroom testimony, Don Harrison, Google’s Head of Partnerships, disclosed:
- Spotify pays 0% fees when processing payments independently
- Only a 4% fee applies when Google handles payments (vs. standard 15%)
- Both companies committed $50 million each to a joint “success fund”
Google initially sought to keep these deal terms sealed, but the court filing revealed the preferential treatment.
How This Compares to Standard Play Store Policies
Google’s typical fee structure includes:
- 15% standard cut on subscription apps
- Potential reduction to 11% through User Choice Billing program
A Google spokesperson explained:
“Key investment partnerships allow us to bring more users to Android and Play by continuously improving the experience… These may involve different service fees as part of broader collaborations.”
Broader Context of Play Store Deals
This isn’t Google’s only special arrangement:
- Netflix was offered a 10% fee in 2017 (currently blocks in-app subscriptions)
- Match Group secured third-party billing rights in a recent settlement
- Bumble participated in Google’s User Choice Billing pilot program
The Epic Games Connection
The trial has uncovered several notable revelations:
- Google offered $197 million to bring Fortnite to Play Store (2021)
- Similar deals were proposed to Activision Blizzard and Riot Games
- Epic rejected Google’s User Choice Billing offer, leading to the current lawsuit
Why This Matters
These disclosures highlight:
- The uneven playing field for app developers
- Google’s selective negotiations with major tech companies
- Potential anti-competitive practices in app store operations
The trial continues to shed light on Google’s business practices, with significant implications for the entire mobile app ecosystem.
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