Spotify makes claims of anti-competitive behavior against Apple
June 30th 2016
recode:
n a letter sent this week to Apple's top lawyer, Spotify says Apple is "causing grave harm to Spotify and its customers" by rejecting an update to Spotify's iOS app.
The letter says Apple turned down a new version of the app while citing "business model rules" and demanded that Spotify use Apple's billing system if "Spotify wants to use the app to acquire new customers and sell subscriptions."
Basically, Apple charges a standard 30% on sales through the App Store. Spotify has complained of this, especially after Apple Music launched, accusing Apple of squeezing the competing streaming provider which sells for the same $10/mo. Spotify charged an extra $3 for subscribers using iTunes billing system to compensate while selling for $10/mo for those using their website.
The new app update, reportedly encouraged people to go to their website rather than use iTunes billing, which is against Apple's rules. Spotify then reportedly removed the promotions, but then disabled the ability to subscribe via iTunes, which again is against App Store rules. Thus, the app was rejected.
The App Store is a business to Apple just as Apple Music. Apple should be able to charge companies making money through the App Store. This is its 30% cut, which by the way Apple recently announced it is cutting for subscription services like Spotify. Customers always had the option to pay less directly through Spotify, which makes it curious why people are willing to pay a few bucks more. I'd guess consumers are willing to pay for what Apple built, which makes it appropriate that Apple get compensated for its marketplace.