Spotify has reportedly reached a special deal with Google that allows the music streaming app to be exempt from Play Store fees.

Gizchina, Tuesday (21/11) local time reported that this step was taken after Spotify stopped supporting Apple's App Store billing in mid-2023 to avoid a potential commission of 30 percent.

In addition to the commission relief, Spotify agreed to pay Google a commission of just four percent for users who sign up for its services through Google. This amount is much less than most other applications which usually pay 15 percent for a subscription via the Google Play Store.

Previously, Spotify reportedly supported Epic Games' testimony in the trial case against Google, where Epic accused Google of committing a monopoly by charging a 30 percent commission on in-app purchases on the Google Play Store.

After that incident, Spotify and Google reached a unique agreement regarding the division of Android in-app purchases.

Google's Head of Global Partnerships, Don Harrison, revealed that when Spotify users subscribe via its own payment system, Spotify does not need to pay a commission. However, if users choose Google as their payment platform, they have to pay a commission of four percent.

Google Play Store is the main application store for Android devices, for browsing and downloading applications, music, books and films. App publishers must pay Google up to 15 percent of purchases made through the store.

However, some companies are dissatisfied with these fees and try to avoid them. Earlier this month, The Verge reported that Google offered Netflix an exclusive deal that offered a commission of at least 10 percent.

However, Netflix rejected the offer and refused to give users a way to sign up for Netflix directly within the app.

Service fees are Google's way of supporting ongoing investment in Android and Google Play. These fees also reflect the value provided by Android and Google Play and are how they make money as a business. This is a common business model for app and game stores run by Microsoft, Apple, Steam, Nintendo, Amazon, and others.

However, Play Store is facing commission issues as developers complain about the high commission rates charged by the platform. Google Play Store charges a 30 percent commission on all in-app purchases, which has been a point of contention for many developers.

In response, Google has introduced a new policy that reduces the commission rate to 15 percent of the first $1 million in revenue a developer earns each year.