Apple Tears into Spotify over 'App Tax' Protest

Apple Tears into Spotify over 'App Tax' Protest

Apple Tears into Spotify over 'App Tax' Protest

Spotify's main argument was that Apple's own music service, Apple Music, isn't subject to the same restrictions of its own app. "A$3 pps should be able to compete fairly on the merits, and not based on who owns the App Store", wrote CEO Daniel Ek.

On Spotify's claim that Apple imposes a "30% discriminatory tax", Apple notes that a large portion of Spotify users are on the free version of the app and that many of its premium subscribers come from partnerships with telco.

Apple also went one step further, attacking how Spotify treats the musicians on its platform, claiming the company makes "ever-smaller" contributions to artists.

"When Spotify submitted their Apple Watch app in September 2018, we reviewed and approved it with the same process and speed with which we would any other app", the company said.

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On Spotify's central complaint about the 30% tax on in-app purchases, Apple said the streaming service "left out" the fact that this levy declines to 15% after the first year.

Unhappy with simply ripping into Spotify's complaints about Apple's business practices, Apple chose to then take issue with Spotify's treatment of music artists. The company also points out that Spotify's Watch app is now the number one app in the Watch Music category.

"To illustrate what I mean, let me share a few examples". No, it never blocked Spotify support from Siri or HomePod, it claims, stating it reached out to Spotify about AirPlay 2 support "on several occasions".

Apple's statement begins with, "We share Spotify's love of music and their vision of sharing it with the world", before distancing itself. Indeed, it's the most popular app in the Watch's (probably not very competitive) music category. In the decade since, the App Store has helped create many millions of jobs, generated more than $120 billion for developers and created new industries through businesses started and grown entirely in the App Store ecosystem.

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The iPhone maker published a blog post on its website on Friday responding to Spotify's claims that Apple abuses its dominant position to "deliberately disadvantage" competing music streaming services.

If a company is big enough to take the risk, however, it's possible to get users to enter their payments through a web browser and then link their accounts to the app without handing over fees to Apple. "Spotify is asking to keep all those benefits while also retaining 100 percent of the revenue", continued Apple.

"After using the App Store for years to dramatically grow their business, Spotify seeks to keep all the benefits of the App Store ecosystem - including the substantial revenue that they draw from the App Store's customers - without making any contributions to that marketplace", Apple said. 'We think that's wrong'.

Just this week, Spotify sued music creators after a decision by the US Copyright Royalty Board required Spotify to increase its royalty payments. Today the company has shot back, basically saying that Spotify just lives to make money off others work.

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In the past, I've argued that the benefits of Apple's approach to the App Store outweigh the downsides.

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