Google Offered Netflix A Special Deal On Play Store Fees: Report

The Epic vs. Google boxing has adult into a much bigger fight against the latter's monopoly power over Android developers. Several state attorneys general have come up up with their own lawsuit against the company. This battle is now revealing new facts about Google'due south anti-competitive behavior past the day. A newly unsealed consumer lawsuit document reveals that Google offered a special bargain to Netflix to pursue it to keep using the Play Store billing system.

Similar many other large developers, Netflix was also looking to innovate an alternative payments system to avoid paying Google a 30 percent commission on subscription revenue. To squash Netflix'due south want, the Mount View company offered to accept a "significantly reduced" commission on the streaming giant'southward Play Store revenues, MLex senior correspondent Michael Acton has pointed out.

Companies similar Spotify and Tinder have besides looked to bypass the Play Shop's billing system. But Netflix was reportedly the only company that received the exclusive proposal from Google. Interestingly, Epic's identical lawsuit against Apple, which targets its App Store policies, had besides revealed similar facts. The Cupertino giant offered Netflix a special treatment to convince the streaming biggie to keep using its billing arrangement.

Google expectedly denied the claims though. "All developers are subject to the same policies as all other developers, including the payments policy," the company said in a statement to The Verge. "Nosotros've long had programs in place that support developers with enhanced resources and investments. These programs are a sign of healthy contest between operating systems and app stores and benefit developers."

Google can break even with simply a six percent acquirement cut

The new consumer lawsuit against Google too reveals a few more facts. Apparently, the company can break fifty-fifty on the Play Store revenue sharing with just a six percent cut. That'southward far less than the xxx percentage commission it charged from developers. Google'south internal communications reportedly ostend that the 30 percent revenue cut was chosen for no reason "other than copying Apple."

Both Google and Apple have already reduced the commission on subscriptions from thirty percent to 15 percent after a year. In March this twelvemonth, Google farther announced to reduces commission on all Play Store digital purchases to fifteen percent for the kickoff $1 million a developer makes.

However, the companies are at present facing multiple lawsuits over their monopolistic behavior in the past. Anti-competitive business practices such every bit this alleged special treatment plans for Netflix are under investigation as well. Fortnite developer Epic Games started the battle after Google and Apple removed the game from their respective app stores saying Ballsy violated their guidelines. The company had introduced its own payment arrangement to circumvent the 30 percent commission it had to pay for all in-app purchases.

Several state attorneys general are also now investigating this matter. Google and Apple may have to make some more concessions to avoid legal troubles. We will have to wait and see how things evolve.