Spotify speaks out against Apple's 30% commission fee -- again

Posted:
in General Discussion

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
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

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Comments

  • Reply 1 of 29
    - insert any gif of a crying baby -
    williamlondonjeffharrismacxpresscoolfactorAlex1NFileMakerFellerCuJoYYCJaiOh81watto_cobra
  • Reply 2 of 29
    "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%."

    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??
    williamlondonjeffharriswilliamhgregoriusmAlex1NFileMakerFellerfotoformat9secondkox2beowulfschmidtJaiOh81
  • Reply 3 of 29
    danoxdanox Posts: 3,081member
    Wait until the Apple Vision Pro comes out, Spotify will be right there complaining and crying.
    coolfactorAlex1NFileMakerFellerwatto_cobra
  • Reply 4 of 29
    croprcropr Posts: 1,130member
    "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%."

    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??
    The Romans already said 2000 years ago:" De gustibus et coloribus non est disputandum":   I find the Spotify UI better than the Apple Music UI.

    williamlondonwilliamhFileMakerFellerJaphey9secondkox2
  • Reply 5 of 29
    Spotify is literally the largest streaming music platform despite fact that all they really bring to the market themselves is an exclusive deal to help Joe Rogan spread misinformation. I could not possibly care less about their concerns. 
    williamlondondewmeStrangeDayscoolfactorAlex1NdanoxCuJoYYCfotoformat9secondkox2roundaboutnow
  • Reply 6 of 29
    foadfoad Posts: 717member
    Spotify chose a loss-leading industry and is scapegoating iOS. They pay less to artists, overspent on podcasting, and are using the government to coverup their poor decisions. 
    williamlondonwilliamhAlex1NdanoxCuJoYYCSpitbathJaiOh81watto_cobra
  • Reply 7 of 29
    davidwdavidw Posts: 2,081member
    >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.<


    That is more disinformation from Spotify crybaby CEO. Apple is not stopping Spotify from informing their customers about alternative payment options by way of ads on the internet, newspapers, magazines, trade periodicals, billboards, on their own website, on social media like Facebook and twitter (X) or using the email address they have on their account holders.

    What Apple prohibit is informing of other payment options inside their iOS app or using the email address from their customers iTunes account. (Unless it's the same as their Spotify account email.) And AFAIK, Spotify should have an email address for all their customers, whether they are under a paid subscription or free with ads subscription. Netflix sends me account info, rates, promotions and movies I might want to watch recommendations all the time, using the email I provided them when I signed up, back when Netflix was only a DVD-by-mail rental service. they don't need Apple permission to do that.


    williamlondonthtfoadcoolfactorAlex1NFileMakerFellerroundaboutnowJaiOh81watto_cobra
  • Reply 8 of 29
    Spotify whining again because they can't make money and continuously rely on investor funding. Somehow this is Apple's fault...
    edited September 2023 williamlondonfoadcoolfactorAlex1NSpitbathwatto_cobra
  • Reply 9 of 29
    Go make your apps store Spotify
    williamlondonfoadcoolfactorwilliamhAlex1N9secondkox2JaiOh81watto_cobra
  • Reply 10 of 29
    This coming from Spotify that has more than double Apple's global marketshare for music streaming services ... oh yes you are so hindered. 
    foadwilliamhAlex1NbeowulfschmidtroundaboutnowSpitbathwatto_cobra
  • Reply 11 of 29
    foad said:
    Spotify chose a loss-leading industry and is scapegoating iOS. They pay less to artists, overspent on podcasting, and are using the government to coverup their poor decisions. 
    They created the loss-leader streaming model and then sold their souls to China and the record labels. Now they are complaining. 
    foadAlex1Nwilliamlondonwatto_cobra
  • Reply 12 of 29
    “voiced concerns”
    williamlondonwatto_cobra
  • Reply 13 of 29
    foadfoad Posts: 717member
    genovelle said:
    foad said:
    Spotify chose a loss-leading industry and is scapegoating iOS. They pay less to artists, overspent on podcasting, and are using the government to coverup their poor decisions. 
    They created the loss-leader streaming model and then sold their souls to China and the record labels. Now they are complaining. 
    I totally agree. I wonder how the economics will materially change if they don’t have to pay Apple’s fees. The vast majority of their user base isn’t subscribed through the App Store and podcasts aren’t an actual success. 
    Alex1Nwilliamlondonwatto_cobra
  • Reply 14 of 29
    It's obscene how much Spotify screws over Musicians and Songwriters and they whine like little bitches when Apple returns the favor.   F' Spotify!!!!
    foadwilliamlondonJaiOh81watto_cobra
  • Reply 15 of 29
    Meanwhile Spotify, their employees and all of their customers are getting the latest and greatest OS releases today ... for FREE! Now you know why Apple charges a commission fee... they spend millions to give away the goods every year! Maybe Apple need to return to the old model of charging for major OS upgrades just to silence these whiners.
    foadgregoriusmAlex1NFileMakerFeller9secondkox2watto_cobra
  • Reply 16 of 29
    Is it ironic or fitting that the Spotify icon looks like a pouting pair of lips?

    Alex1NFileMakerFellerwatto_cobra
  • Reply 17 of 29
    davidwdavidw Posts: 2,081member
    foad said:
    genovelle said:
    foad said:
    Spotify chose a loss-leading industry and is scapegoating iOS. They pay less to artists, overspent on podcasting, and are using the government to coverup their poor decisions. 
    They created the loss-leader streaming model and then sold their souls to China and the record labels. Now they are complaining. 
    I totally agree. I wonder how the economics will materially change if they don’t have to pay Apple’s fees. The vast majority of their user base isn’t subscribed through the App Store and podcasts aren’t an actual success. 

    Right now, Spotify is not paying Apple anything. Some time this year, they stopped allowing iOS Spotify customers to use their iOS app to pay for their subscriptions.  And even years before this, Spotify was charging iOS Spotify customers that wanted to use their iTunes account to pay for their subscriptions, the 30% commission. So it cost $13.00 (when the subscription was $10) if iOS customers wanted pay with iTunes. In reality, Apple commission hasn't cost Spotify a dime for nearly 10 years now. And  when they were charging $13 for subscriptions paid through their iOS app, (to pay for Apple 30% commission), they were charging the same $13 even if they might only have to pay a 15% commission to Apple for customers that's been subscribers for over a year. I don't ever recall Spotify charging  $11.50 for customers whom they only have to pay a 15% commission.




    And yet that crybaby CEO of Spotify been crying about having to pay Apple 30% commission for over 10 years and going.  

    edited September 2023 gregoriusmAlex1NFileMakerFellerfoadtmayroundaboutnowjcs2305thtwilliamlondondanox
  • Reply 18 of 29
    Dear Spotify,

    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
    9secondkox2williamlondonJaiOh81watto_cobra
  • Reply 19 of 29
    danoxdanox Posts: 3,081member
    genovelle said:
    foad said:
    Spotify chose a loss-leading industry and is scapegoating iOS. They pay less to artists, overspent on podcasting, and are using the government to coverup their poor decisions. 
    They created the loss-leader streaming model and then sold their souls to China and the record labels. Now they are complaining. 
    Somehow, Android is somewhere in that list….. don’t let them off the hook you know the free pizza and beer list.
    edited September 2023 watto_cobra
  • Reply 20 of 29
    Higher costs for consumers?  Wrong — software costs less to purchase than ever before.  Before the App Store, there were multiple hands involved in the transaction, all wanting a piece of the profit.  The App Store has lowered the barrier of entry, lowered costs for developers, and lowered the cost to consumers.

    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.
    roundaboutnowwilliamlondondarelrextophatnosockswatto_cobra
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