Netflix received a significant discount on the Play Store’s “Google Tax”

A recent development from the Epic v. Google trial has unearthed some interesting information. As part of the ongoing lawsuit, it was revealed that Google reduced its commission on in-app purchases to 15% for the first million dollars of revenue, but reverted to 30% once that threshold was crossed.

Epic, the developer of Fortnite, attempted to bypass Apple and Google’s in-app payment process, resulting in both tech firms kicking Fortnite out of their app stores. The company filed lawsuits against both Apple and Google, claiming that their payment demands were unfair. Other companies like Spotify and Netflix also expressed similar complaints about the commissions they had to pay.

In a video deposition, it was disclosed that Netflix paid Google 15% of in-app subscription revenue prior to discontinuing in-app subscriptions on Android. It was also revealed that Google offered Netflix a special deal to lower the percentage of in-app revenue to 10%. However, Netflix ultimately declined the offer, as it would have resulted in a loss for the streaming company.

As a result, Android users can no longer subscribe to Netflix directly from the app but are directed to use a mobile browser instead. This has led to Netflix paying Google 0% of its revenue from Android users. Despite this inconvenience, it is unlikely to deter most people from signing up for a subscription.