Secret agreement between Google and Spotify revealed

Secret agreements sometimes exist between different companies. It turns out there is a secret deal between Google and Spotify regarding commissions.

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Secret agreement between Google and Spotify revealed

While Google is frequently in the news due to various lawsuits, we are now hearing its name in connection with a secret agreement it made with Spotify. So, what are the details of this secret deal?

In a report by The Verge, a Google executive touched upon the agreement made with Spotify during testimony in a lawsuit between Epic and Google.

NO COMMISSION FEES PAID ON SUBSCRIPTIONS PURCHASED THROUGH SPOTIFY

It has been revealed that the secret agreement Google made with Spotify, which adopts a relatively more lenient commission system compared to Apple, contains some significant arrangements. Spotify will not pay any fees or commissions to Google for subscriptions purchased directly through its platform.

If users purchase a Spotify subscription using Google's payment method, the company will charge Spotify a 4 percent commission.

Google normally charges a 15 percent commission. Google can reduce this commission fee to as low as 11 percent in some cases, but there is a different pricing situation for Spotify.

On the Apple side, this is referred to as the Apple Tax and can go up to 30 percent.

News Source: 12punto