Spotify is exempt from paying Play Store fees as per an arrangement between the two companies, as disclosed by a Google executive in connection with the legal dispute involving Epic Games and Google. This disclosure followed Google’s request to the court to maintain confidentiality regarding their agreement with Spotify in early November.
Spotify is exempt from paying Play Store charges under a specific agreement.
Google typically charges subscription apps on the Play Store 15% of the revenue generated, with the possibility of reducing this fee to 11% based on the user’s payment method selection, enabling developers to utilize their own or third-party payment solutions.
Spotify does not incur charges for handling user payments internally, but a 4% fee is applied when payments are processed by Google. Additionally, both companies have agreed to invest $50 million each in a “success fund.”
Other companies were offered the same proposal as Spotify.
Google proposed a deal to Netflix in 2017, allowing the streaming service to pay only a 10% fee for subscriptions through the Play Store. Despite this, Netflix currently does not permit users to buy subscriptions using their Android app.
