Google’s Sweetheart Deal With Spotify Included 4% Fees on the Play Store
This week, we found out about the terms of the deal. The deal includes a 4% fee on payments made with Google.
The information came out in the court case between Epic and ____. In the Google trial, Google's top partnerships executive, Don Harrison, said the deal is confirmed. Spotify didn't pay Google anything when users paid through Spotify's payment system, and only 4% when users chose Google Play.
Google tried to keep these numbers a secret while they were arguing with Epic Games about antitrust issues. They said that if people find out about this special agreement, it could make it harder for Google to make similar deals with other developers who might rather pay a lower fee. Harrison said that Google believed it had to make a special deal with Spotify to increase sales of Android.
Harrison said that if Spotify doesn't work well on Android phones, no one will want to buy them. Google admitted that the testimony was true in a statement.
Dan Jackson says that a few developers who invest a lot in Android and Play might have to pay different fees for services. This is part of a bigger partnership that includes a lot of money and integrating products on different devices. "We work with other companies to make Android and Play better for everyone. This helps more people use Android and Play, and it gives developers more chances to succeed. "
Spotify got a good deal, but Google won't say who else got one. Netflix was given a discount of 10%, but they said no and now they don't allow in-app purchases at all. "Meanwhile, Spotify used its power to negotiate better fees from Google in private and they won. "
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