Highlights

  • Spotify struck a deal with Google for favourable payment terms

  • Paid 0% commission for subscriptions through its system

  • Google credits Spotify's popularity for justifying this special arrangement

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Secret deal with Google allowed Spotify to avoid Play Store fees on Android: See how

Spotify's strategic manoeuvre to forge a favourable deal with Google serves as an alternative approach to navigating the contentious issue of app store fees, potentially setting a precedent for other developers.

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      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.

      Details Revealed During Epic vs Google Trial

      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.

      Impact on Android's Market Position

      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.

      Contrasting Approaches in App Store Fee Disputes

      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.

      Also watch: MediaTek unveils Dimensity 8300 with tri-cluster CPU, enhanced GPU, and advanced AI

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