Google Allegedly Bends Rules for 'Big Enough Customer' Offering Netflix 'Special Deal'

Urian B., Tech Times 31 August 2021, 01:08 am

Google allegedly bends its own rules for certain customers that are "big enough." This was seen as the app offering service offered Netflix a particular "special deal." After the already messy lawsuit with Epic, more and more details about Apple's practices are coming to light.

Google Play Lawsuit

According to AndroidPolice, the last few years have brought heightened scrutiny on Google Play's current power over certain Android developers. This was especially known in the wake of the company's lawsuit with Epic.

The company then followed Apple's lead back in March 2021 by lowering its fees to just 15% for the very first $1 million revenue. The newly unsealed customer lawsuit that involves Google reveals even more facts regarding how the Play Store works behind the scenes. This includes a secret deal that Google made with Netflix.

Netflix, Spotify, Tinder 'Special Deals'

A screenshot on the article by Android Police noted that Netflix, Spotify, and Tinder have repeatedly sought to "bypass Google Play Billing" as Netflix also wanted an alternative payment system. Google reportedly offered to chunk out a "significantly reduced avenue share percentage" towards Netflix.

Not all developers were able to have their own success despite many wanting to use their very own payment system. Google's own internal calculations also reveal that the company can still break even on Google Play Store along with a 6% revenue cut. This is lower than the 15% it currently takes within the first $1 million.

The initial 30% rate was also allegedly chosen in order to just match Apple's cut on the App Store. According to a Tweet thread by Michael Acton, there are three things to take away from the unsealed Google Play Store lawsuit.

1. Google reportedly offered Netflix a special deal in order for them to stop "griping" about the 30% fee.

2. Google also estimated that Samsung just made $0.1 billion from the store back in 2019 compared to Google's massive $4 billion.

3. Google calculated that the company could break even with just a 6% commission fee on PlayStore compared to its current 30%.

Google Responds to the Issue

The Verge was able to obtain a statement from Google. The company noted that all developers are actually subject to the "same policies" that other developers experience and this includes the payments policy.

The company reportedly long had programs already in place supporting developers with enhanced investments and resources. Google noted that the programs are a sign of healthy competition between operating systems as well as app stores and benefit developers. It was even alleged that Google would acquire Epic despite the company not being aware.

Despite Google's actual changes to its own revenue cuts made this year, the company is still facing multiple antitrust lawsuits throughout the United States. Companies like Netflix and Epic are continuing to push for more options in third-party app stores as well as payment services.

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Written by Urian B.