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Interesting analogy. To me the difference here is that people are specifically searching for Spotify and the only place they can get it is the App Store (Best Buy). I would assume that Spotify doesn’t benefit that much from any App Store advertising. With most Beat Buy stocked products there are other places to get it from, so it’s in Best Buy’s interest to win the sale from their store - hence we don’t see practices like the one described.
They don't have to have to go to the App Store, because they didn't have to buy an iPhone. They could've bought one of the other 99% of current phones on the market. This is really getting ridiculous.

'OH BUT THEY ALREADY GOT AN IPHONE THEYRE TRAPPED"

No more than I'm trapped because I bought a bunch of games for Playstation, but now I want an X-Box, and I can't use my Playstation discs.

STOP THIS RIDICULOUSNESS. ITS NOT A MONOPOLY.
 
OK but then they’d have to raise the price of an Apple Music subscription by 30%.
No they don't. Obviously I have not seen their books but I am 100% sure they do cross-charge the Apple Music cost center. This is accounting 101 and there a butt ton of laws around internal accounting. They are paying the commission. The fact that the parent body of both Apple Music and the App Store is Apple is irrelevant. Apple Music has a profit margin to meet. If corporate has set a 13% EBIDTA on Apple Music and the music service is able to meet that target at $7 per subscriber, that all is good. If they cannot, then they have to raise the subscription costs.

A business unit within a large company is run like a separate business. Each has its own P&L and operations teams. One day we see people here comment that XYZ business unit in Apple is bigger than 88 of the Fortune 100 firms. If you can understand that, why is it hard to understand that that same XYZ unit is run just like those 88 firms?

edit: fixed typo
 
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Spotify has a much stronger case than Epic.

Even then Spotify seems to have done well despite subscriptions being only available via the internet or other platforms.

But surely the way Apple has integrated Music into the iPHone and promoted it along with the lack of fees to pay thru the app store is problematic. it feels a lot like Netscape vs MS Windows & IE.
How is Apple Music integrated? It is just an app and be removed just like every other optional app on the phone. Siri can now send all requests to Spotify if you choose.

This is nothing like the MS IE - Netscape suits. IE was truly embedded in that it could not be removed without fundamentally breaking Windows, MS actively forced the PC to pay for the IE license whether it was used or not (browsers were not always free), barred PC makers from preinstalling Netscape or they lose the right to Windows at all. Basically MS did everything they could to put Netscape out of business and corners the Internet Browser market based on their massive dominance in the PC OS space.
 
Ironically, this is exactly what happens to bricks-and-mortar stores when shoppers check out items there, and then whip out their phone to check Amazon's price. Amazon gets the sale while essentially using the B&M store as their free showroom.
Ironically, you just made the point against opening up the store. I can use the App Store to find and download Spotify, then when I am checking out the subscriptions I just "whip out [my] phone" (OK, slide over to Safari) and check the price on the Spotify.com. Then I am using the App Store as Spotify's "free showroom."
 
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my comment was not about spotify, but it also wasn't anti-apple. it was more about pro-consumer
How was your comment pro-consumer? Consumers can subscribe to Spotify over the web, whether they have an iOS device or Android. Consumers have wider interests than simply yes/no to Spotify subscriptions being accessible with one or two less finger movements to go out to the web, and those interests include the security of the App Store. Frankly the security of the App Store is a much bigger issue to real consumers, and in many cases dictates the choice of Apple or Android. A genuinely pro-consumer comment would have taken that into account
 
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Netflix seems to have solved the problems where Apple doesn't get 30% of their subscription fees. Just a message that you need an existing account to log in to use the app. Then a pointer to how set one up if you don't have one, nothing about payment at that point. As soon as on the web page owned by Netflix, subscription options are described. I think by now most consumers know they need to go the services' web page and set up accounts before using a service's app. For me I have everything I want set up so I can use it on a browser on my computer first and then get the app for mobile convenience.
 
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These are rather problematic, not just Music, but also the other categories where Apple directly competes with others in the App Store, like Fitness and Video Streaming.

It's a difficult position to compete from if you have to give 30% revenue to your competitor to begin with.
Have you been to a grocery store? They offer their own private brand of the same products like cereals, canned foods, and even medications, for a lot less of the branded ones, and they put them side by side on the shelves. So where’s the anti competitive yelling against the grocery store chains?
 
Doesn't mean it's wrong or illegal though. It just means that Spotify doesn't like it because the current arrangement is not to their benefit.

What we are simply seeing is how Apple uses design to marginalise entire industries and markets. Like when Apple integrates airtags into its find-my network, I see it as being clever to ride on its existing billion-strong iPhone install base. Apple has painstakingly built up this user base, why shouldn't they be allowed to take advantage of it?
 
There is the easiest solution. Offer a free trial that requests their email. Send them an email to have them sign up via your website. Wow, problem solved. That is all of these companies issue, They are NOT creative or innovative. Like  says, “We’re not the first, but the best.”
 
The Spotify guy talks about it as if iOS is the only platform in the world!
At the end of the day iOS has cost billions to develop. Apple's ad fee's alone are in the billion dollars as year. They have taken numerous risks on that platform that others have laughed at (no headphone socket, walled garden etc..) so they have taken considerable risk. All of this needs to be compensated for.

You can't spend billions and billions of dollars building a customer base, an OS with api's etc.. so that anyone can sit on that platform and make money from your hard work. Hell no!

People need to remember that Windows is a paid for product. Android is paid for via its search business etc.. And even then there are multiple OEM's sharing the burden of creating these platforms. Apple is on its own. If something doesn't work (HomePods etc..) they eat the cost. Thats the risk of doing business.

Spotify seem to imply there is no risk to Apple doing business. As if the platform just exists out of thin air for everyone to make money off it. Just like any physical store, people spent money to build it, to advertise it, and get people into the store. No store on earth says go and buy this shirt next door where its cheaper.

At the end of the day, if 30% is too high then developers will move elsewhere and innovate on other platforms. Nothing is stopping them. There is no need to legislate where there is no monopoly. Let the market decide, just as we have always done.
Well, realistically, they’re one of the two major mobile platforms.

Also, honest question: is Spotify one of the apps that Apple won’t allow to advertise, after downloading the app, that subscriptions can be purchased outside of the App Store? I honestly don’t know the answer to this, so I’m asking.

Lastly, I hate having to go to the Amazon website on my iPhone or iPad to buy a book or rent a movie. You can’t even use the Amazon app to do so! Does Apple get a cut of stuff I order thro the Amazon app? Why are books and movies different? I’m really surprised that both sides have never come to an agreement about this, especially since it’s been doable on Android for as long as I can remember.
 
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I can agree that apple has the right to its cut on payments done through App Store, but apple not allowing Spotify to direct people to its website seems shady
I think Spotify can direct people. They just cannot link to it. They can put on their app - go to our website to sign up. They just cannot provide a direct link. But I could be wrong.
 
Yes. Likely lack of interest, but more significantly patents, of which many no doubt are owned by Apple.
Most of the component patents are owned by many companies, namely Qualcomm for modems. Did you miss Apple bowing down to Qualcomm in their lawsuits? Apple is not the issue in this particular case.
 
what will happen if Spotify is removed from the App store, or it they withdraw from the App Store?
How many iOS users will switch to Android?
And how many iOS users will switch to another music streaming service? Spotify seems to have a strong following.
Just curious.
The fact that Spotify is not doing it means they do have concerns that their own product won’t carry their customers. And I’m sure majority of Spotify users are free tier users. And going Android only will put Spotify head to head with YouTube music, which is part of Google certification that it is pre-installed on all Android phones with GMS. Strange that Spotify never mention that about Google…
 
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How was your comment pro-consumer? Consumers can subscribe to Spotify over the web, whether they have an iOS device or Android. Consumers have wider interests than simply yes/no to Spotify subscriptions being accessible with one or two less finger movements to go out to the web, and those interests include the security of the App Store. Frankly the security of the App Store is a much bigger issue to real consumers, and in many cases dictates the choice of Apple or Android. A genuinely pro-consumer comment would have taken that into account
as i just said. the comment was not related to spotify
 
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BestBuy has a store. You can choose to go to the store, or not go to the store. Not going to BestBuy's store has no effect on any other store you choose to go to.

Yet Apple says its our store or no store. Now normally I would say this is no different than buying a console game. Microsoft isn't going to let you use Sony Playstation games on its Xbox. But there is a catch here. You access Apple's store through the airwaves. And the people, through their elected representative, have decided that the airwaves are owned by the people. So since the airwaves are owned by the people, the people, through their elected representatives are free to set conditions on their use.

So where Apple is free to say my house (iPhone), my rules. The FCC is free to say my house (the airwaves), my rules.

If Apple doesn't like it, then they are free to design a device that doesn't use the airwaves.
This would be such an over reach by the FCC it would be absurd. This would be completely beyond their legal duties and the courts would throw this out in a second.
 
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Amid the ongoing legal battle between Epic Games and Apple, Spotify's chief legal officer and head of global affairs Horacio Gutierrez penned an anti-App Store op-ed in The Wall Street Journal, where he summarizes Spotify's issues Apple.

spotify-complaint-apple-eu.jpg

Gutierrez says that Spotify is one of the few companies that insists Apple is a "ruthless bully that uses its dominance to hobble competitors."

Spotify has long been upset with Apple's App Store fees, as the 15 to 30 percent cut that Apple takes from subscriptions means that Spotify has to either raise its prices for those who sign up via the App Store or decline to offer subscriptions on iOS at all, which is what Spotify has opted for.

Apple's "antisteering" rules prevent Spotify from directing iPhone and iPad customers to the Spotify website to sign up, which Spotify argues gives Apple Music some major advantages.

Gutierrez points out the many regulatory issues that Apple is facing in Europe and the United States. The European Commission in April found that Apple breached EU competition law with Apple Music, and in April, the Senate Judiciary Antitrust Subcommittee questioned Apple's App Store policies. Spotify, Tile, and others attended the latter hearing and said that if Apple's App Store rules aren't changed, Apple will take over the internet, "limiting innovation, squashing small businesses, and all but eliminating customer choice."

Spotify is asking the U.S. to speed up its regulatory initiatives against Apple with "urgent, narrowly tailored updates" to antitrust law to "end such egregious abuses."

Gutierrez says that Spotify isn't asking for special treatment, but wants "fair treatment," and he sums up his piece by stating that Apple's "ability to strangle its competitors is unprecedented." He says that those in a position "to do something" have now "seen past Apple's facade" and are now acting on the behalf of "innovators and consumers around the world."

Article Link: Spotify Legal Chief: 'Apple's Ability to Strangle its Competitors is Unprecedented'

Boy, it sure would be something if, over the course of a few days, Spotify, Netflix, Amazon, Facebook and Instagram (IG being way more valuable than FB, really, in regards to ”stickiness”), and all the other pissed off developers — big and small — grew brass balls and just pulled their apps from iOS devices.

You could have the most secure OS with the smoothest UI running on Super Retina XDR Plus displays and the most powerful mobile chips on the market, but if the Apps people love aren’t there, you’re in trouble. Hell, If Tiktok pulled their app along with the others above, it’d be a 100% “game over, man“ situation. Because if you lose that teen/early adult market, too…well, bye bye.

That might be the only way, outside of a court decision, that might make Apple loosen the hell up. They seem to forget, or maybe just not give a damn, how much the early apps in the App Store made the iPhone, and how much they still do.

Damn, that would really be something to see, wouldn’t it?
 
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