In 2017, Google made a significant proposal to Netflix, offering the streaming giant a special deal where they would only have to pay a 10% commission on in-app purchase revenue on Android, a substantial cut from the standard 30% rate.
This offer was contingent on Netflix agreeing to use Google Play Billing service across the globe. Despite the potential financial benefits, Netflix declined the offer and chose to remove the subscription option through the app altogether, thus bypassing any commission fees.
This revelation came to light during the Epic vs. Google trial, where Epic Games accused Google of anti-competitive practices in its app store. The fact that Google was willing to negotiate its commission rates for a major player like Netflix raises questions about why similar concessions are not made for other companies.
This situation is particularly pertinent in the context of the trial, as it could suggest that Google can abuse its dominant market position by enforcing a standard commission rate that it has the power to reduce when it sees fit.
The outcome of the Epic vs. Google trial could have significant implications. If the judge rules in favor of Epic, it may force Google to alter its commission structure, potentially benefiting app developers with higher revenues.
This could also lead to increased prices for Google’s services for consumers, as the company might look to offset the loss of commission income.