Epic v. Google: Secret Spotify Deal Sees Zero Commission Rate on Play Store

Isaiah Richard, Tech Times 20 November 2023, 08:11 pm

The recent revelation on the Epic v. Google lawsuit confirmed a shocking secret deal between the internet giant and Spotify, where the music streaming company does not pay any commission rates. Yes, this claim said that there is a zero percent commission fee for Spotify whenever customers pay for their subscriptions via the platform's payment channels.

Epic v. Google Reveals Secret Spotify Deal: Zero Commission Rate

(Photo : STEFANI REYNOLDS/AFP via Getty Images)

A new development via Epic v. Google had the internet company's Don Harrison, Google's head of global partnerships, spilling the beans regarding the exclusive and secret deal it has with Spotify. This now centers on Spotify paying a zero percent commission rate to Google when users opt to pay via its payment processors.

It was defended by Harrison, saying that this is a "bespoke deal" that justifies this exclusively for Spotify, given that it is one popular app. The executive further said that Spotify's operations ensure that Android phones see a good performance in the market, hence the sweet deal for its Play Store operations.

The Verge claimed that Google affirmed this statement by Harrison, saying that developers who invest in Android and Play Store directly get special commission fees or rates compared to others. It was said that part of its deal led both companies to set up a $50 million "success fund."

Google Only Charges Spotify 4 Percent via its Processor

However, not all users opt to pay via Spotify's third-party payment processor, and there are still several users who have already set up their payments to be made via Google's services. With that, Google charges Spotify a 4 percent commission fee for every transaction only.

This is different from the Google User Choice Billing program from 2022 which removes as much as 4 percent of Play Store's 15 percent stake, bringing it to 11 percent if opting for their payments processor.

Google's Antitrust and Secret Deal with Apple

Google has been hit with multiple antitrust lawsuits in its run, but earlier this year, it saw several significant ones, including its dispute with Match, which has already been settled, but immediately followed by another one from EpicGames. The massive scrutiny against the world's renowned search engine company centers on Epic's fight against Big Tech's monopoly, particularly with the commission rate.

This also follows the massive resurrection of the issue that focuses on Google's exclusive deals with Apple to keep the search engine at the top in the market, with Mountain View paying Cupertino $8 to $12 billion annually. It was reported that in 2023, it dipped to $8 billion to keep Google the default search engine on Apple devices because of the many antitrust that it is facing.

The antitrust lawsuit that centers on the Epic v. Google case now only shows the many secret deals that Mountain View has to keep its dominance and partnerships alive. However, it is not the same for all platforms and companies, with this secret deal exclusive to Spotify, despite companies like Epic Games pushing to abolish app store commission rates.

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