Google Took Lower Play Store Commission From Netflix
An antitrust lawsuit filed against Google reveals that the tech giant offered to take a significantly reduced cut from Netflix purchases through its Play Store in order to placate the streaming company.
The lawsuit explains that Netflix wanted an alternative payments system, but were rebuffed, with a lower percentage offered as a compromise.
“Similarly, Netflix, Spotify, and Tinder, some of the nation’s largest and most popular subscription services, have repeatedly sought to bypass Google Play Billing,” the filing reads.
“In particular, Netflix wanted an alternative payments system. Apparently in an effort to ameliorate this displeasure, Google offered to take a significantly reduced revenue share percentage to Netflix. Not all developers, however, have met with Netflix’s success, even though many have sought to use their own payment systems.”
The lawyers who filed the suit are attempting to use this revelation to show how Google aims to stamp out competition.
A Google spokeswoman says of the charge: “All developers are subject to the same policies as all other developers, including the payments policy.
“We’ve long had programs in place that support developers with enhanced resources and investments. These programs are a sign of healthy competition between operating systems and app stores and benefit developers.”
The suit also reveals that Google’s break-even level for revenue sharing in the Play store is around six per cent, with the company admitting the 30 per cent figure for commission is an “arbitrary fee” with “no rationale, other than copying Apple.”