Spotify might soon bypass Android billing, but Google’s still getting paid

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Spotify might soon bypass Android billing, but Google’s still getting paid
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The app store tax isn’t going away.

If a user chooses to pay Spotify directly instead of using Google’s billing system, Spotify won’t have to give Google its entire 15% fee, according to a person familiar with the matter. A Google spokesperson said the company hasn’t sorted out the financial terms yet.Reached for comment, Spotify declined to say what sort of commission it would be paying Google as a part of this pilot test, noting that the agreement was confidential.

Google also declined to detail the commission structure involved. However, it noted that user choice billing, such as is the case in South Korea, will still involve a service fee regardless of which billing system the user chooses. There will still be a fee. There will still be a commission. As Google’s “first partner,” Spotify just got to negotiate a new deal for itself. We just don’t know how much it is — only that Spotify seems happier today thanthat “on-demand music streaming services” will be “eligible” for a fee “as low as 10%.”

And we know that Google and Spotify are being cagey about it. Google spokesperson Dan Jackson would not confirm Google’s comments toon the record. Spotify spokesperson Taylor Griffin wouldn’t go on the record either.at all, letting big companies like Spotify get dibs and get to negotiate favorable backroom deals. Why not open up the Play Store to alternative payment processors, period, and let the market set the price?

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