A confidential agreement between Spotify and Google has come to light, revealing that Spotify was able to bypass the usual app store fees on the Android platform.
This deal sheds light on the intricate negotiations between app developers and platform providers and has significant implications for the future of app store economics.
According to recent testimonies in the Epic vs Google trial, it was disclosed that Spotify paid no commission when users purchased subscriptions through its own system.
However, in cases where users opted for Google as their payment processor, Spotify paid a mere 4% commission, a stark contrast to Google's standard 15% fee.
While shedding light on the individual deal struck between Spotify and Google, this revelation also underscores the significant sway that popular apps like Spotify hold over the Android platform.
Google acknowledged that Spotify's tremendous popularity justified the "bespoke" deal, emphasising the influential role that app developers play in shaping the dynamics of app store economics and platform competitiveness.
The disclosure of this unique agreement highlights a departure from the confrontational approach taken by Epic Games.
Epic, the publisher of Fortnite, is currently embroiled in a legal battle with both Apple and Google over app store fees.
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