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Amid rumors that the European Commission will soon fine Apple 500 million euros for breaking EU law over access to streaming music services, Apple today commented on its relationship with Apple Music competitor Spotify and the ongoing complaints that Spotify has made to the EC to attempt to get the App Store rules changed.

Apple-vs-Spotify-feature2.jpg

In a statement to MacRumors, Apple said that Spotify is aiming to get unlimited access to Apple's tools and services without paying anything for the value that Spotify receives from the App Store.
"We're happy to support the success of all developers -- including Spotify, which is the largest music streaming app in the world. Spotify pays Apple nothing for the services that have helped them build, update, and share their app with Apple users in 160 countries spanning the globe. Fundamentally, their complaint is about trying to get limitless access to all of Apple's tools without paying anything for the value Apple provides."
The European Union's investigation into the streaming music market and Apple's App Store policies was initially sparked by Spotify. Spotify has complained multiple times about the App Store rules that prevent it from allowing users to subscribe to Spotify without using in-app purchases and without paying a fee to Apple.

Spotify began working with the European Commission in 2015, and the company filed a final complaint in Europe in 2019. That led to a Statement of Objections from the European Commission in 2021. After that, the European Commission filed a "replacement" Statement of Objections on two separate occasions as it narrowed the focus of its investigation, with the latest statement released in December 2023. Over the last 10 years, Spotify met with the European Commission 65 times in an attempt to convince the EU that Apple's rules negatively impact streaming music services.

Apple says that while Spotify has claimed that Apple policies were harming competition and stifling growth, the streaming music market was in reality growing, presenting a challenge to the European Commission and leading to the revisions in the Statement of Objections. The commission was not able to pursue Apple for requiring app developers to use in-app purchase nor did it find that Apple was harming consumers with anti-competitive practices, so the investigation shifted to the anti-circumvention rules that prevent apps from informing users about lower subscription prices available outside of the App Store.

According to Apple, Spotify wants to rewrite the rules for its own gain. Apple does not believe that Spotify's complaints are about competition or finding a better deal for consumers -- it says Spotify simply wants a better deal and is using the European Commission to try to get it. Spotify wants access to Apple's technology, App Store reach, and to monetize through the App Store without paying anything to Apple.

The European Commission has said that Apple's anti-circumvention rules are "detrimental to users of music streaming services on Apple's mobile devices" and could lead to confusion for consumers that results in higher prices, but it is Apple's opinion that the European Commission's view on this point is misguided and has been heavily influenced by Spotify's ongoing complaints.

Apple says that Spotify is the dominant streaming music provider in Europe and other countries, and that much of the company's success can be attributed to the App Store. Spotify's apps are able to work seamlessly across Apple devices because of Apple's engineering efforts. Spotify has used TestFlight for almost 500 versions of its app, and it uses thousands of Apple's APIs across 60 frameworks.

If and when the EU fines Apple over this matter, the company will almost certainly appeal the decision, so the antitrust battle between Apple and Spotify is likely far from over.

Update: In a statement, Spotify said it does not have a level playing field with Apple and trusts that the European Commission will take action to create a fair ecosystem.
Spotify’s success has happened despite Apple's best efforts to gain an artificial advantage by favoring their own music service at every turn while placing roadblocks and imposing unfair restrictions on ours. Under their current rules Apple controls Spotify’s access to its own customers and gives Spotify one of two untenable options: We either have to deliver a poor user experience where we can’t directly communicate how to buy or subscribe to Spotify on iPhones or we have to accept a 30% cost disadvantage against our biggest competitor. This is not a level playing field. We support the European Commission and trust that they will take action soon to create a fair ecosystem for everyone involved.


Article Link: Apple Says Spotify Wants 'Limitless Access' to App Store Tools Without Paying
 
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Come on Apple don't cry...
Those that should cry are those poor developers, the real engine of the App Store and iOS I'd add...
That till now, put effort developing apps for getting paid cents thanks to the fees Apple charge them, for essentially what...?
 
Apple keeps lying to defend their entitled and monopolistic behavior.

It's completely false that Spotify pays Apple nothing. Just like other developers, Spotify pays a yearly fee for the Developer Program, which according to Apple includes "all the tools, resources, and support you need to create and deliver software to over a billion customers around the world on Apple platforms"
 
Um, yeah. You're in the market as a competitor to them. When you undertake that, you should surrender certain anticompetitive practices, including effectively charging your competitor to compete with you on your own platform. You should also forfeit the right to use the Settings app to advertise your own services, but that's another story for another day...
 
Running the App Store costs money. It should be easy to quantify how much, make that data auditable, add a decent margin, and bill that cost to Spotify and other large Apps publishers. This is how it works for electricity, telecom services and other utilities. I don't see why it should not work for the App Store.
 
Spotify is a big baby.

They want access to Apple's user base that Apple risked billions setting up, have Apple pay for all of the infrastructure for serving Spotify app and notifications, and they take 100% of the revenue.

So stupid. Apple deserves their cut.
What? How are they Apple’s user base when Spotify is available on other platforms plus the web? Does AT&T own me because they’re my cellular provider? Should they get a cut of everything I do on my phone? Or how about my ISP? Without either my iPhone would be pretty useless.
 
Spotify is a big baby.

They want access to Apple's user base that Apple risked billions setting up, have Apple pay for all of the infrastructure for serving Spotify app and notifications, and they take 100% of the revenue.

So stupid. Apple deserves their cut.
So if you buy an iphone, your soul belongs to apple!? I didn't read that in the EULA /s
Enjoy being a product.
 
Running the App Store costs money. It should be easy to quantify how much, make that data auditable, add a decent margin, and bill that cost to Spotify and other large Apps publishers. This is how it works for electricity, telecom services and other utilities. I don't see why it should not work for the App Store.

perhaps spotify should pay apple $0.003-$0.005 per search in the app store.. that's what they pay artists per stream
 
perhaps spotify should pay apple $0.003-$0.005 per search in the app store.. that's what they pay artists per stream
I don't think Apple will be very happy with this exact arrangement. I probably only did that once when I installed the Spotify app.
 
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Come on Apple don't cry...
Those that should cry are those poor developers, the real engine of the App Store and iOS I'd add...
That till now, put effort developing apps for getting paid cents thanks to the fees Apple charge them, for essentially what...?
You mean the developers who get 70-85% of the revenue generated? Don’t pretend like Apple is getting most of the money the devs are charging.
Then what is the yearly developer fee paying for?
Literally app signing and account validation for the store. That’s it. To suggest the entire App Store and dev tools are funded by a $99 fee is ridiculous or at worst disingenuous. You don’t even need to pay for a dev account to use the dev tools or build your own apps / learn / test. Just when you’re ready to launch to the store.

Only developers who generate revenue through the App Store are funding the system with revenue sharing. That means MOST apps are paying nothing towards that continued support and development, including Spotify (and anyone else who does not have IAP or charges a fee for the app).
 
Running the App Store costs money. It should be easy to quantify how much, make that data auditable, add a decent margin, and bill that cost to Spotify and other large Apps publishers. This is how it works for electricity, telecom services and other utilities. I don't see why it should not work for the App Store.
I would love to see the breakdown of a $1000 iPhone. I would assume a portion of that is going to covering the cost of running the App Store. Or are the defenders of Apple’s App Store policies suggesting users shouldn’t have to pay anything for the cost of running the App Store, only developers should?

Let’s not forget when the App Store first launched Steve Jobs said the intention was to run it as a break-even business. And back in 2011 Phil Schiller suggested dropping the commission rate once the App Store got to a $1B/yr profit run rate.

 
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