Apple hits back at Spotify’s antitrust complaint
In a searing statement, Apple said the streaming platform wants all the benefits of a free app without being free.
Spotify, which launched a year after the 2007 launch of the iPhone, said on Wednesday the tech giant unfairly limits rivals to its own Apple Music streaming service.
Spotify called out Apple’s App Store as specifically stifling competition.
Apple’s control of its App store deprived consumers of choice and rival providers of audio streaming services to the benefit of Apple Music, which began in 2015, Spotify added.
Apple took a shot at Spotify’s claims in a statement posted to its website, saying the App Store is built to help ‘more app businesses thrive, including the ones that compete with some aspect of our business, because they drive us to do better.’
‘Spotify wouldn’t be the business they are today without the App Store ecosystem, but now they’re leveraging their scale to avoid contributing to maintaining that ecosystem for the next generation of app entrepreneurs,’ the company said in a statement. ‘We think that’s wrong.’
The statement also addresses Spotify’s complaints about what they refer to as the ‘Apple tax,’ or the 30 percent fee companies pay to Apple for in-app purchases.
‘The only contribution that Apple requires is for digital goods and services that are purchased inside the app using our secure in-app purchase system,’ the firm continued.
‘As Spotify points out, that revenue share is 30 percent for the first year of an annual subscription — but they left out that it drops to 15 percent in the years after.’
Apple then took its response a step further by criticizing how Spotify treats artists on its platform.
‘Underneath the rhetoric, Spotify’s aim is to make more money off others’ work. And it’s not just the App Store that they’re trying to squeeze — it’s also artists, musicians and songwriters.
‘Apple’s approach has always been to grow the pie.
‘By creating new marketplaces, we can create more opportunities not just for our business, but for artists, creators, entrepreneurs and every “crazy one” with a big idea,’ the firm added.
Spotify didn’t take Apple’s response lightly, either.
‘Every monopolist will suggest they have done nothing wrong and will argue that they have the best interests of competitors and consumers at heart,’ a Spotify spokesperson told Gizmodo.
‘In that way, Apple’s response to our complaint before the European Commission is not new and is entirely in line with our expectations.’
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