Like many other big developers, Netflix was also looking to introduce an alternative payments system to avoid paying Google a 30 percent commission on subscription revenue. To squash Netflix’s desire, the Mountain View company offered to take a “significantly reduced” commission on the streaming giant’s Play Store revenues, MLex senior correspondent Michael Acton has pointed out. Companies like Spotify and Tinder have also looked to bypass the Play Store’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 also revealed similar facts. The Cupertino giant offered Netflix a special treatment to convince the streaming biggie to keep using its billing system.
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. “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.”
Google can break even with just a six percent revenue cut
The new consumer lawsuit against Google also reveals a few more facts. Apparently, the company can break even on the Play Store revenue sharing with just a six percent cut. That’s far less than the 30 percent commission it charged from developers. Google’s internal communications reportedly confirm 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 30 percent to 15 percent after a year. In March this year, Google further announced to reduces commission on all Play Store digital purchases to 15 percent for the first $1 million a developer makes. However, the companies are now facing multiple lawsuits over their monopolistic behavior in the past. Anti-competitive business practices such as 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 Epic violated their guidelines. The company had introduced its own payment system 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.
