Apple CEO Tim Cook has been more than clear that service like the iOS App Store are an crucial part of the fellowship ’s futurity as consumer hang onto devices for farsighted and longer periods between climb . When Spotify filed anantitrust lawsuitagainst Apple this week , it fired a direct shot at the technical school giant ’s strategy . Now , Apple hasissued its rebuttalto Spotify ’s accusations .
Spotify has had its gripes with the App Store on and off for many age . Apple charges apps a fee for “ digital goods and armed service that are purchased inside the app . ” In the case of a subscription help like Spotify ’s ad - costless exchange premium package , that fee is 30 percent for the first twelvemonth and 15 percent for each additional twelvemonth . Most apps that charge for digital service just deal with it and cough up the fee . Because iOS is a walled garden , it ’s not potential to proffer an alternative place to download an app with purchases that avoid Apple ’s fees .
If a caller is large enough to take the peril , however , it ’s possible to get users to enter their payment through a web internet browser and then link their accounts to the app without handing over fees to Apple . That ’s the coming thatSpotifyandNetflixhave adjudicate to take .
But Spotify is tired of give users an inconvenient method acting for sign on up and paying for its agiotage service . The companyannounced this weekthat it has filed an antimonopoly lawsuit with the European Commission , incriminate Apple of anti - competitive behavior . In reply to Spotify CEO Daniel Ek’sblog postexplaining his position , Applepublishedits rebuttal on Thursday .
The Apple post spends a lot of time excuse its philosophy regarding the app computer memory and goes on at duration about empowering developers and create a political platform from scratch — window bandaging argument , in other words . When it came to specifics , Apple straight up refuse a few of Spotify ’s claims .
For one thing , Spotify claim that because it does n’t utilise Apple ’s requital scheme it is routinely penalized with technical and existential limitation . Ek explained that “ over time , this has let in locking Spotify and other challenger out of Apple services such as Siri , HomePod , and Apple Watch . ” Apple say that it has actively encourage Spotify to expand its ambit on Siri and AirPlay 2 and were tell that the company was “ make on it . ” As for the Apple Watch , it said the claim was “ especially surprising ” because the Spotify Watch app is currently the issue one app in the Watch Music family . Apple spelled out its position in clear terms , saying , “ Spotify is free to build up apps for — and compete on — our intersection and platform , and we go for they do . ”
Apple went on to bicker with some other claims that Spotify made , but it failed to address a couple of period . Ek sound off that “ legion other apps on the App Store , like Uber or Deliveroo , ” do n’t have to make up “ the Apple revenue enhancement . ” On that point , Apple ’s policy is that it only charges for “ digital good and service that are buy inside the app , ” not services that are put up alfresco in the real populace . Whether or not it should utilise its fees to everyone disregardless of their source of revenue is a matter that ’s up for public debate .
Butas VentureBeat observe , the most glaring omission from Apple ’s web log post is that it does n’t mention Apple Music at all . The Southern Cross of Spotify ’s line is that it is directly vie with Apple ’s medicine streaming service but the 30 percent fee requires it to inflate its Leontyne Price . Since Apple does n’t have to pay any fees to itself , Spotify believes it has an unfair competitive advantage .
Apple did not immediately respond to our request for comment on this history , but a interpreter for Spotify sent us the following affirmation :
Every monopolist will indicate they have done nothing wrong and will fence that they have the best interests of competitors and consumers at heart . In that mode , Apple ’s response to our complaint before the European Commission is not new and is alone in line with our expectations .
We filed our complaint because Apple ’s actions spite competition and consumer , and are in clear violation of the law . This is evident in Apple ’s belief that Spotify ’s users on iOS are Apple customers and not Spotify customers , which goes to the very heart of the take with Apple . We observe the process the European Commission must now set about to comport its recapitulation . Please visitwww.TimetoPlayFair.comfor the fact of our case .
The affair is , Apple is crusade this state of war on a few fronts . In the come calendar month , the Supreme Court isexpected to ruleon a similar typeface that argues that in the absence of an substitute app store on iOS , the 30 percent fee amounts to a hidden revenue enhancement on consumers because developer have to bake the fee into their pricing . It appears that Apple wants to keep its arguments focused on the fund as a whole rather than now engaging with point about its own apps .
Aside from the fact that this is probably Spotify ’s good angle on the case , Apple may need to avoid the Apple Music argument because it ’s also facing calls from Senator Elizabeth Warren to “ break up ” the App Store . Though Apple has been a minor nidus of Warren ’s technical school policy marriage proposal , she believes that the company should n’t be tolerate to put its own products in its exclusive store because it can hobble competitors through the kinds of exercise that Spotify is trace . “ Either they start the platform or they encounter in the store , ” Warren toldThe Verge . “ They do n’t get to do both at the same time . ”
In the past , I’vearguedthat the benefits of Apple ’s approach to the App Store outweigh the downside . I still think that ’s true and if you do n’t wish the Apple way , then you may go use the many other devices available on the market . But I have to allow that Spotify ’s specific typesetter’s case has understandable deservingness . And it is potential that the European Commission ’s hard - nosed attitude towards antitrust could work in Spotify ’s party favour . Though the character are somewhat different , governor in Europe did find that Google ’s inclusion body of the Chrome web browser app pre - establish on Android devicesgave it an unfair advantage .
With everyone advertise Apple ’s back against the rampart , the caller is digging itself deeper into the armed service fee business . Later this month , it will be holdingan eventalmost certain to include the launch of Apple magazine and video streaming platform . Most of the focus on those Robert William Service has orb around the interrogation of whether the great unwashed want them or if Apple can offer enough quality substance to contend . The substantial interrogation might be whether Apple has to change its whole concern model in Holy Order to even operate on those platform .
[ AppleviaReuters ]
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