Spotify Is Claiming Damages Against Apple!
Spotify has filed an anti-trust complaint against Apple, the tech giant Apple supposedly unfairly pushes its Apple music app over Spotify and limits rivals.
Spotify was released in 2008 which is just 1 year after the launch of the first iPhone. Spotify claims that the Apple store is unfairly pushing Apple music over Spotify. Other streaming services have agreed and will also be pushing anti-trust complaints against Apple and the App Store.
For companies, app developers and streaming services, Apple charges a 30% fee to allow them use of In App Purchases. These are payments that are made to the app for any content that they sell. In games they are usually virtual currency and in music its new tracks, albums etc.
Horacio Gutierrez, the general counsel of Spotify has said that the company had been pressured by Apple. He says that the company was pressured into the billing system back in 2014, which is a 30% fee like we previously said. Spotify charged 9.99 euros for access to their premium service however because of the new 30% fee Spotify raised the price to 12.99 to break even. Apple then launched their own service Apple Music for just 9.99 euros without them having to pay a fee because it’s their own service.
Spotify finally had enough and decided to cease use of the in-app purchase system, meaning you couldn’t buy premium through your smartphone. You would have to use a laptop or computer to upgrade your account on their website. This was in an effort to stop Apple receiving money from Spotify subscriptions each month.
In the app store rules, it states many limitations on what apps can and can’t show while using the App store platform. Spotify said, “content-based apps could not include buttons or external links to pages with production information, discounts or promotions and faced difficulties fixing bugs. Such restrictions do not apply to Android phones.” He further said “Promotions are essential to our business. This is how we convert our free customers to premium,”
Spotify also has complaints regarding the Voice recognition service, Siri. Apple would not allow Siri to connect to Spotify; they can only connect Siri to Apple Music. This is devastating for Spotify since it can’t go anywhere without Apple Music blocking it. The Apple watch was a huge deal for Apple and Spotify, since everybody planned on controlling music using the watch.
Unfortunately though if you go to the App-store on the Apple watch you won’t be able to find Spotify. Apple declined Spotify on their request to put the popular music streaming app on the brand new Apple watches.
So with all the limitations and problems that Apple has given to Spotify we can imagine just how much economic damage Spotify has suffered. Though Spotify hasn’t shown the numbers yet, they are sure to be very high since Apple has been blocking them left and right.
Gutierrez finished with the following statement. “We feel confident in the economic analysis we have submitted to the Commission that we could have done better than we have done so far,”
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