Spotify speaks out against Apple's 30% commission fee -- again
Spotify has once again voiced concern over Apple's 30% commission on App Store apps that mostly doesn't apply to it, stating it harms competition and limits consumer choice.
Spotify
As it's said before, Spotify believes companies should have the opportunity to compete on a level playing field to win over consumers. In a new press release, the company asserts that Apple's restrictive policies conflict with this principle and unfairly favor its own financial interests.
Spotify points out that while there has been some progress in Europe, global regulatory intervention remains insufficient. This, according to Spotify, allows Apple to maintain its monopolistic control over the App Store, resulting in higher costs for consumers and stifling innovation among developers.
The company has expressed concerns regarding Apple's practices, stating that they have a negative impact on user experience and innovation. An example provided by Spotify is the need to create a complex process for audiobooks due to Apple's restrictions, resulting in a suboptimal user experience.
Additionally, Spotify notes that it cannot inform customers about pricing for Premium membership upgrades, provide alternative payment options beyond Apple's rules, or introduce new features without explicit permission from Apple.
Spotify has expressed concerns about sharing confidential business plans with Apple during the approval process, which could give their main competitor an unfair advantage. They also point out the inconsistency in Apple's policies, where Apple's apps like Apple Music are not subject to the 30% commission, putting third-party developers and their customers at a disadvantage.
As it turns out, Spotify is mostly not subject to Apple's 30% commission either. After the first year of a subscription, Apple's fees drop to 15%.
The ongoing battle between Apple and Spotify has been going on for years now. In 2019, Spotify filed anti-competitive complaints against Apple in the European Union.
In July 2023, the company announced that it would cut off remaining customers who were paying for Spotify Premium through the App Store.
Apple has spoken out against Spotify's claims, stating that the company wants "all the benefits of a free app without being free," among other things.
Read on AppleInsider
Comments
oh.
Well that seems more than fair.
And while we're on the topic of complaining: Hey Spotify how about paying an actual user interface designer to clean up the train wreck that is your interface no matter what you're trying to do??
You have absolutely the same chance as Apple to develop a music playing device and sell it to customers. You clearly have significant access to investor capital and friends in the EU government, licensing deals that are the equal of or superior to Apple's, and the ability to conduct business globally. If you're struggling, do what Apple did: develop something new that appeals to consumers more than most of the existing alternatives. Just because you're currently selling music and podcast subscriptions doesn't mean you can't branch out into new fields of endeavour. Sure, the road is incredibly difficult and you'll have public figures denouncing your attempts even after you achieve success - but if you're good enough, and committed enough, you'll get there.
Sincerely,
The Internet
Stifling innovation? Wrong — software innovation is at the highest level it has ever been. The sheer abundance of software available only happened post App Store.
Spotify is upset because they can’t run a profitable company. Their business model is garbage, and they turned music into a commodity.