Spotify, others complain to EU about Apple's 'unfair' App Store practices
Europe's streaming services are again on the hunt for better business arrangements, as Spotify, Deezer and others this week asked the European Commission to rein in U.S. tech firms that are "regularly abusing their advantaged position."
Spotify co-founder and CEO Daniel Ek. | Source: Spotify
In a joint letter, executives from a number of European companies, including Spotify co-founder Daniel Ek and Deezer CEO Hans-Holger Albrecht, urged the European Commission to ensure "a level playing field" for products marketed on platforms like Apple's App Store, the Financial Times reports. Along with streaming music services, signatories include games publishers and developers.
Echoing statements made in previous complaints, the companies claim larger platform operators that are also competitors, like Apple and Amazon, put them at a crucial disadvantage. Apple, for example, runs the iOS App Store, a dominant player in the app distribution game, where it also markets the Apple Music streaming service.
As it has done in the past on more than one occasion, Spotify notes it must pay Apple 30 percent of all App Store revenue, including fees for recurring subscriptions. The streaming music service failed to mention that Apple recently updated its subscription policy by dropping its cut to 15 percent for subscriptions older than one year.
To offset Apple's take, Spotify sells its premium subscription tier for $13 per month when users sign up through the iOS app, a $3 premium over the $10 users pay when registering through the web. Spotify has said that it views Apple's cut as "a weapon to harm competitors," as Apple sells its own music service for $10 per month.
In any case, it seems Apple's concession are not enough. The group of companies, which includes UK-based shopping comparison site Foundem, seeks "clear and enforceable obligations that are a deterrent and prevent unfair businesses practices by platforms."
"These obligations should include but go beyond mere transparency requirements, which alone will not ensure platforms act as gateways rather than become gatekeepers to the digital economy," the letter reads.
The group also assert that platform owners like Apple do not allow access to comprehensive user analytics, a complaint that has cropped up in the past.
The letter arrives as the commission considers a drastic overhaul of its digital policy. Among the topics of debate are allegedly unfair contracts mandated by dominant platforms like Apple's App Store. Previous reports suggest the commission is thinking about creating an independent body to handle disputes between large companies and smaller firms.
Today's complaint is the latest in a string of actions against Apple on the part of Spotify. Earlier this year, the streaming music firm filed a nearly identical complaint with the European Commission, though that letter failed to mention offenders by name.
In 2016, Spotify went so far as to accuse Apple of monopolistic practices when an updated version of its iOS app was rejected from the App Store.
Spotify co-founder and CEO Daniel Ek. | Source: Spotify
In a joint letter, executives from a number of European companies, including Spotify co-founder Daniel Ek and Deezer CEO Hans-Holger Albrecht, urged the European Commission to ensure "a level playing field" for products marketed on platforms like Apple's App Store, the Financial Times reports. Along with streaming music services, signatories include games publishers and developers.
Echoing statements made in previous complaints, the companies claim larger platform operators that are also competitors, like Apple and Amazon, put them at a crucial disadvantage. Apple, for example, runs the iOS App Store, a dominant player in the app distribution game, where it also markets the Apple Music streaming service.
As it has done in the past on more than one occasion, Spotify notes it must pay Apple 30 percent of all App Store revenue, including fees for recurring subscriptions. The streaming music service failed to mention that Apple recently updated its subscription policy by dropping its cut to 15 percent for subscriptions older than one year.
To offset Apple's take, Spotify sells its premium subscription tier for $13 per month when users sign up through the iOS app, a $3 premium over the $10 users pay when registering through the web. Spotify has said that it views Apple's cut as "a weapon to harm competitors," as Apple sells its own music service for $10 per month.
In any case, it seems Apple's concession are not enough. The group of companies, which includes UK-based shopping comparison site Foundem, seeks "clear and enforceable obligations that are a deterrent and prevent unfair businesses practices by platforms."
"These obligations should include but go beyond mere transparency requirements, which alone will not ensure platforms act as gateways rather than become gatekeepers to the digital economy," the letter reads.
The group also assert that platform owners like Apple do not allow access to comprehensive user analytics, a complaint that has cropped up in the past.
The letter arrives as the commission considers a drastic overhaul of its digital policy. Among the topics of debate are allegedly unfair contracts mandated by dominant platforms like Apple's App Store. Previous reports suggest the commission is thinking about creating an independent body to handle disputes between large companies and smaller firms.
Today's complaint is the latest in a string of actions against Apple on the part of Spotify. Earlier this year, the streaming music firm filed a nearly identical complaint with the European Commission, though that letter failed to mention offenders by name.
In 2016, Spotify went so far as to accuse Apple of monopolistic practices when an updated version of its iOS app was rejected from the App Store.
Comments
My main point, they make in the article. Apple takes 30% of Customers that sign up via The App. Meaning they were not already a customer of theirs. They were Apple’s Customer. Apples website, AppStore, tv or print ads and Name brought them to the platform.
If if Spotify and others did a better job marketing and invested more than Apple to draw thier subscribers, they would signup on their website and then be prompted to download the app. Apple takes 0% of that. Realistically there is no reason why Apple couldn’t charge for every download of Spotify. When was the last time you walked into a physical store and everything was free?
Theyre simply a one trick horse, as true innovation requires great risk, flexibility and vision.
Spotify keeps adding market share to a single product with extremely thin margins. If Netflix never developed in-house content, their growth would’ve stagnated and competion increased.
Similar to Amazon prime, Apple will continue to roll new features and content into their service until Spotify‘s house of cards collapses.
Apple has the power and pockets to win the long game on this.
And yes - internally to Apple when people download and subscribe then the 'Apple Music' company should pay the same fees to 'Apple Corp.' as other App vendors do - then it's a level playing field.
I dont want Apple Music on my iPhone because it's bloat - but I can see the argument that if Microsoft has to unbundle Media Player from Windows that Apple should be required to unbundle Apple Music from iOS.
Brace for it.
Apple Music is a service, not an app. It is not bundled with iOS. There is a music player though, but it's there because it is part of the core functionality of the device; "a touch screen iPod"
Microsoft had to unbundle Media Player because it was purposefully and actively stepping all over competing music players, just as Internet Explorer did. Furthermore, Microsoft was subject to further scrutiny because they were a monopoly in the desktop OS market and tried to leverage that to squash competition in other areas.
I'm thinking Spotify is squirming now because a large chunk of their paid subscribers came (are coming) from iOS. Problem is, they agreed to the terms Apple presented when they signed up to be an iOS developer.
If an iOS user chooses to subscribe to Spotify, it could very well be lost revenue for Apple; one less iOS user that would sign up for Apple Music, or buy iTunes songs.
In your example, Walmart doesn't have a competing magazine publishing house... they're not losing anything.