Apple considers the App Store’s 30% commission on purchases within the streaming service to be fair.
On March 14, Apple, in its blog, responded to Spotify’s charges of manipulating the App Store to create Apple Music’s advantages over its competitors. The company said it does not set special restrictions for music streaming service. On March 13, Spotify filed a complaint against Apple with the European Commission due to “unfair competition.”
The company responded to Spotify claims that Apple is blocking the update of the application and does not provide access to other products, including Siri, HomePod and Apple Watch. According to Apple:
- The company approved and distributed about 200 updates to Spotify;
- Apple only rejected updates when Spotify tried to circumvent company rules;
- Apple approached Spotify for Siri and AirPlay 2 support and offered to help;
- Spotify is integrated into CarPlay and has access to resources for developers;
- Spotify introduced the app for the Apple Watch in September 2018. Apple reviewed and approved it as quickly as any other application. Currently, Spotify Watch is ranked first in the category of Watch Music.
Apple also commented on the charges of charging a 30% commission for purchases in the app in the App Store. In the claim, the head of Spotify said that the company imposed this “tax” so that the prices of competitors were higher than those of Apple. The company said that Spotify wants to get all the benefits of a free application, while not being free:
- Apple requires 30% of the profits only in the first year of the subscription. In subsequent years, the percentage drops to 15;
- Most Spotify users use the free version of the application. It does not bring income to Apple;
- A significant part of Spotify clients use affiliate programs of mobile operators. This does not bring Apple revenue, but Spotify pays a similar “tax” for distribution to retailers and telecom operators;
- The rest of the users who pay for the Spotify subscription do fall under the Apple revenue sharing model;
- Apple takes a percentage of Spotify’s revenue only for bringing in users who pay a subscription. The company provides a platform for downloading and updating the application, tools for developers and a secure payment system. According to them, Spotify asks to keep all these advantages, while maintaining 100% of the income.
Apple noted that Spotify has significantly expanded its business through the App Store due to the advantages of the platform. At the same time, the company pays a small percentage to the musicians and “even sues them”.
We share Spotify’s love for music and a desire to share it with the world. But we differ in ways of achieving this goal. Under loud statements, Spotify hides its desire to make more money at the work of others.from Apple statement
On March 7, Spotify filed a lawsuit against the American panel of judges, which determined that companies must pay 44% of royalties to artists. As of 2019, Spotify pays $ 0.00397 for one listening to a song, and Apple pays $ 0.00735.