The Leadership Letter

Real correspondence from the people running real companies — and what it reveals about leadership.

Why Holding Price Is Really About Holding Precedent

The real cost of a discount isn't the revenue you lose — it's the pricing power you can never rebuild.

Reviving this thread as an FYI — I received a call yesterday from Tinder's Founder and Chairman Sean Rad. He noted there have been several internal discussions around incorporating additional payment methods beyond GPB and wanted to understand how that might impact our overall relationship.

• I communicated this would be in violation of our policy and would severely handcuff us in terms of Play partnership opportunities moving forward. • He initially said interest was due to payment reach and penetration in certain markets, but after pressing for more detail, he noted they're more interested to see how additional payment options would impact overall revenue in certain regions without the rev share. • He inquired about other partners, including Spotify, and our stance on them not using GPB.

Separately, an earlier message in the thread notes the strategic bind plainly: 'Once we go to 15% right off the bat there is no coming back and it puts pressure for us to do the same on other verticals.' And on co-marketing as a lever: 'it's unlikely that co-marketing funds will bring services like Match or Zosk on to GPB unless we are willing to make a huge investment ($10M+ to offset 30% rev share) which doesn't seem likely.'

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Court Exhibit
In re Google Play Store Antitrust Litigation (Epic v. Google)
3:21-md-02981 (CAND), Doc. 886-51, filed 2023-12-21
June 27, 2017
Public domain
View the primary source →