Users who download the Spotify app from the Google Play Store will soon be able to decide whether to subscribe to the audio streaming service using Google Play or Spotify’s separate payment services, the companies announced Wednesday.
The updated payment feature will roll out later this year and will essentially allow Spotify to lose less commission fees to Google, if users choose to subscribe to the streaming service through Spotify’s payment service.
Last October, shortly after the high-profile antitrust case between Apple and Epic Games that ruled, in part, that Apple’s 30% commission fee for in-app purchases was acceptable, Google announced that it would reduce its service charges on in-app Android. subscriptions at 15% from January 2022.
Specific terms of the revenue split between Spotify and Google were not disclosed. But the partnership, described by Google on Wednesday as a pilot program, is expected to yield an even lower commission to users who buy Spotify subscriptions through Google Play. Google will still take a small discount for subscriptions purchased using Spotify’s payment option, although that specific percentage isn’t immediately clear.
“The issue of platform fairness is very important to Spotify,” Alex Norström, Spotify’s freemium business manager, said in a statement on Wednesday. “Spotify is on a multi-year journey to ensure app developers have the freedom to innovate and compete on a level playing field. We’re excited to partner with Google to explore this approach to payment choice and the opportunities for developers, users and the entire internet ecosystem.We hope that the work we do together will pave a way for the rest of the industry to follow.
“Android has always been about openness and user choice,” said Sameer Samat, vice president of product management at Google. “This step is a big milestone for mobile app stores and I can’t imagine a better first partner than Spotify. They value choice as much as we do and understand the importance and continued investment in Android and Play for the health of the entire ecosystem.”