Google executive says Spotify allowed to bypass Play Store fees as part of confidential deal

Google allowed Spotify to bypass the company’s mandatory Play Store fees, a company executive reportedly confirmed while testifying during the ongoing Epic vs. Google trial. The Verge reports that a confidential deal with the streaming giant has emerged, revealing that Spotify was allowed to process its own payments on the service without paying commission to Google. The search giant previously sought to keep the details of its deal with Spotify secret during its ongoing case with Fortnite maker Epic Games.

According to report, Google’s head of partnerships Don Harrison testified during the ongoing Epic v. Google trial that Spotify did not pay the company any fees when it processed customer payments itself. If customers choose to pay Spotify through Google’s in-app billing service, the platform pays Google a 4 percent commission.

Google charges a 15 percent cut of all app purchases and in-app purchases from most publishers on its platform, but that figure can be reduced in South Korea, India, and 35 other countries where the company offers developers an option to Is – User Choice Billing – This reduces the commission by 4 percent.

The report said that in addition to the music streaming platform’s popularity on Android, the Google executive also testified that the search giant and Spotify had agreed to a “success fund” under which each company would receive $50 million (about $410 million). Crore rupees).

It’s worth noting that while Spotify may receive special treatment from Google, the company is still liable to pay in-app purchase commissions on Apple’s App Store — which can go as high as 30 percent of each transaction. Like Netflix and many other services, the streaming service does not allow users to purchase a subscription through the Spotify app on iOS.

It is too early to tell whether these revelations will have an impact on Epic Games’ case against Google. The game publisher sued both Apple and Google over their alleged antitrust practices, which include blocking the use of alternative billing systems and alternative app stores on iOS and Android, respectively. The testing has revealed a number of interesting details about Google and other companies — including a billion-dollar deal with Samsung to keep the Play Store, Assistant, and Search apps as default on Galaxy smartphones.

The Epic vs. Apple trial ended earlier this year when the Ninth Circuit Court affirmed a 2021 ruling that found the iPhone maker’s ban on competing app stores on iOS does not violate U.S. antitrust law. Apple lost only one claim in the trial – that the firm would have to allow developers to allow links to external payment systems inside their apps. is epic appealed the decision While in the US Supreme Court, Apple has asked the court to vacate the Ninth Circuit Court order blocking its anti-steering rules.

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