Epic vs. Google lawsuit reveals that Spotify had a secret agreement with Google to make fees ``free'', Google says ``Spotify is special because it's popular''



User Choice Billing,

introduced by Google in 2022, will reduce fees by 4% to 11% when users use the app's proprietary payment system. However, testimony in the Epic Games vs. Google lawsuit reveals that a 'secret agreement' between Google and Spotify meant that if users chose Spotify's proprietary payment system, the fees would be 0%. became.

A secret Google deal let Spotify completely bypass Android's app store fees - The Verge
https://www.theverge.com/2023/11/20/23969690/google-spotify-android-billing-commission-secret-deal



Google reportedly struck a special with Spotify that let it skip Play Store fees

https://www.engadget.com/spotify-reportedly-struck-a-special-deal-with-google-that-let-it-skip-play-store-fees-224646377.html



According to tech news site The Verge, Google's head of global partnerships, Don Harrison, told the court that if users choose to pay for their subscriptions through Spotify's proprietary payment system, Spotify's fees will be zero. He admitted that it would be %. If a user chooses Google, the fee is 4%, which is significantly lower than the 15% fee that Google charges for typical apps.

Google wants to hide its contract with Spotify, and during the trial, Google asked not to disclose part of the User Choice Billing contract, saying it would ``damage negotiations with app developers who want more generous fees.'' I was requesting it.



Google explains that Spotify's 'unprecedented popularity' justifies the extraordinary action. 'Listening to music is one of the primary uses for smartphones, so unless Spotify works well across Google Play services and core services, people won't buy Android smartphones,' Harrison said on the stand. I guess so.”

Mr. Harrison also testified that as part of the agreement, the two companies had agreed to each contribute $50 million (approximately 7.4 billion yen) to a fund called the 'Success Fund.'

Google spokesperson Dan Jackson confirmed Harrison's testimony in a statement to The Verge, saying, ``A small number of developers who invest directly in Android and Google Play will continue to invest in our services as part of a broader partnership.'' Fees may vary. These important investment partnerships bring more users to Android and Google Play by continually improving the experience for all users, and for all developers. It will create new opportunities for



Spotify has been at odds with Apple over its app store fees being too high, and stopped accepting payments through the App Store in July 2023. The company also formed a coalition with Epic Games, which had launched a legal battle against Google and Apple over fees, but as a result of the recent Epic Games vs. Google lawsuit, Spotify has been exempted from paying Google Play Store fees. It turns out that

Regarding this point, The Verge said, ``While Epic Games continues its legal battle, Spotify seems to have found an easier and much cheaper way to get out of the dispute with Google.'' .

A thread on the social news site Hacker News that discussed this issue said, ``Spotify must pay 80% of its revenue to rights holders, so if it were to pay a 15% fee to Apple, it would not be viable as a business.'' ``Payment fees are deducted before payment to rights holders, and rights holders are paid based on net revenue , not gross revenue.'' I did.

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