March 19, 2019

Spotify Files EU Complaint Against Apple Over 30 Percent App Tax

16 March 2019, 01:14 | Joann Bryant

Spotify files antitrust complaint to Brussels against Apple

Spotify says Apple Music has

Spotify opted not to use the in-app purchase (IAP) system Apple provided, and the company alleges that the decision led to second-class treatment from Apple.

Apple should be probed by the European Union's antitrust agency over how it allegedly squeezes rival music streaming services, Spotify Technology SA said, escalating a debate over how Apple takes a cut of sales on its App Store.

"It's why, after careful consideration, Spotify has filed a complaint against Apple with the European Commission (EC), the regulatory body responsible for keeping competition fair and non-discriminatory".

Ek called for apps to be able to compete on their merits, not based on who owns the App Store.

Meanwhile, other developers have also complained about Apple's constantly evolving App Store guidelines, which feels shifting goalposts that the company changes on a whim, often to suit its own interests while claiming to do so on behalf of its users.

The music streaming provider further argues that developers that choose not to use the IAP system also end up taking a hit from an additional set of restrictions imposed on them by Apple.

A spat between the companies that operate two of the biggest music streaming services in the world has landed at the doorstep of the European Union, which has been taking an increasingly tough stance lately against antitrust-related issues involving United States tech companies.

The Spotify app is free to download and users need to spend Rs 119 a month to upgrade to Spotify Premium. Netflix recently stopped allowing iOS users from subscribing to their plans from within the app as they too no longer wanted to pay the Apple tax.

Spotify has filed a legal complaint against Apple for what it believes is anti-competitive behavior.

Spotify, for example, asks people to pay for its premium subscription through its website rather than through iTunes.

All Spotify wants, says its founder, is to be treated the same as apps that don't pay the 30% tax such as Uber or Deliveroo.

"And to keep our price competitive for our customers, that isn't something we can do", added Ek. Spotify says that Apple has repeatedly rejected updates to its iOS app after Spotify withdrew from using Apple's in-app purchase system, which gave Apple a 30% cut of the subscription charges.

"We aren't seeking special treatment", Ek explains. He also wants customers to have "a real choice of payment systems".

As I recently shared, competition pushes us to evolve and improve both the customer and creator experience.

Other News

Trending Now

Students drag mayor out of office for climate 'strike'
Hong Kong students are set to march from Chater Garden in Central to the Central Government Offices in Admiralty from 11am to 2pm. Luisa Neubauer, one of the Berlin group organizing Fridays for Future , said politicians should take note of the young.

Supreme Court revokes the lifetime ban on S Sreesanth
The court asked the cricket board to consider a fresh punishment for the former India pacer within the next three months. The Supreme Court, however, has not upheld the findings of guilt made by the disciplinary committee against Sreesanth.

LeBron James slams home alley-oop reverse dunk
Giannis Antetokounmpo scored 24 points to lead six Milwaukee scorers in double figures in a win at New Orleans. Going against a team that is also looking toward the draft, the Lakers were able to win this one.

Quality of living key in overseas operations
The survey also highlighted notable cities in South-east Asia, such as Kuala Lumpur, Bangkok, Manila and Jakarta. Conversely, Bangui (230) scored the lowest for the continent and also ranked lowest for personal safety (230).

All-English showdowns in Champions League quarterfinals would be 'fantastic' - Jose Mourinho
Manchester United , Manchester City , Tottenham and Liverpool will be part of the draw on Friday morning but for the first time since 2006, there will be NO German teams involved in the latter stages of the UCL.

Trump vetoes legislation to strike down his emergency declaration for border wall
The bill passed the Senate by a margin of 59-41 with 12 Republicans joining Senate Democrats in a rare rebuke of the president. On Friday, Attorney General William Barr also said his emergency order was "clearly authorized under the law".

Islamic State launches counter attacks at Syria enclave
The official said jihadists were using suicide bombers but his force intercepted them before they reached their target. The SDF said earlier its fighters advanced slowly to avoid losses and were encountering sniper fire and landmines.

WR DeVante Parker signs incentive-laden 2-year contract with Dolphins
Additionally everything I have heard says Parker wanted to remain in Miami; since head coach Adam Gase is no longer here. Parker was originally under contract with the Dolphins on his 5th year option at $9.4M and was expected to be released.

Korea embassy assailants linked to CIA
El País reported that Spanish investigators have ruled out the possibility that the attack was carried out by "common criminals". The cars used for the getaway belonged to the diplomatic mission and were later abandoned in a nearby street.

Jazz owner Miller addresses Westbrook incident
Others have not been as pleasant, and Denver's Will Barton said he believes fans know they can get a reaction from Westbrook. Westbrook took no questions from reporters about the incident (or the game), only delivering a 3-minute long statement.