The Wall Street Journal: Spotify reaches deal with Google to allow alternative in-app payment method

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Spotify Technology SA has reached a deal with Google to offer an alternative payment method within its app for users, the latest sign of the weakening grip that app stores have over third-party software.

The streaming music service and Alphabet Inc.’s
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-1.14%

 
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-1.26%

search giant announced the deal Wednesday, allowing Spotify’s 
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+0.75%

 app within the Google Play Store to offer a choice between its alternative payment method and Google’s own, which takes as much as a 30% share of revenue.

To avoid that fee, Spotify didn’t allow users to sign up for paid services through Google’s app and users were required to go to the music company’s website.

A Spotify spokeswoman declined to say what Google’s cut of revenue from the alternative payment method would be. The alternative billing option is expected to become available later this year, Spotify said.

“It’s safe to say that we negotiated commercial terms that meet our standards of fairness,” the spokeswoman said. Daniel Ek, Spotify chief executive, on Twitter touted the arrangement as setting “the stage for what the next generation of platform should look like.”

An expanded version of this report appears on WSJ.com.

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