![]() ![]() ![]() ![]() Google and Spotify expect to launch the first iteration of “User Choice Billing” later this year. Over the next few months, Spotify said, it will work with Google’s product and engineering teams to build the new experience. Spotify said it will continue to “freely communicate with users about our Premium subscription service, promote discounts and promotions, and give listeners on our free tier the ability to convert to Premium, directly in the app.” The new agreement “will give everyone the freedom to subscribe and make purchases, using the payment option of their choice, directly in the Spotify app,” Spotify said in a blog announcing the Google deal. Spotify sided with Epic Games, maker of “Fortnite,” in the game company’s legal challenge to Apple App Store policies for developers Epic mostly lost in an initial ruling, which it has appealed.Īpple, under its regular policies, collects 30% of first-year subscription payments it reduces that to 15% starting in the second year of a subscription. Spotify still does not allow customers to pay through Apple’s App Store. Spotify has publicly railed against the practices adopted by Google and Apple’s app stores. Last fall, when Google announced its change to a 15% commission for subscriptions from the get-go (instead of 30% in the first year), the company said music streaming services were eligible “for a service fee as low as 10%.” Google also will charge a fee for purchases made through Spotify’s billing system, but that figure isn’t public either. Spotify will be paying Google a cut of subscription fees under the new arrangement - which is some percentage less than the standard 15% that Google now charges developers for subscriptions, but neither company would confirm what that number is - for purchases made through Google’s app store. ![]()
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