Spotify on Apple's Response to App Store Dispute: 'Every Monopolist Will Suggest They Have Done Nothing Wrong'

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Spotify on Wednesday announced it filed an antitrust complaint against Apple with the European Commission over unfair App Store practices. Apple responded two days later, labeling the complaint as "misleading rhetoric" and arguing that "Spotify wants all the benefits of a free app without being free."


The war of words has since continued. In a statement issued to Variety, Spotify said "every monopolist will suggest they have done nothing wrong" and that, consequently, Apple's response was "entirely in line" with its expectations.

Spotify's statement:
Every monopolist will suggest they have done nothing wrong and will argue that they have the best interests of competitors and consumers at heart. In that way, Apple's response to our complaint before the European Commission is not new and is entirely in line with our expectations.

We filed our complaint because Apple's actions hurt competition and consumers, and are in clear violation of the law. This is evident in Apple's belief that Spotify's users on iOS are Apple customers and not Spotify customers, which goes to the very heart of the issue with Apple. We respect the process the European Commission must now undertake to conduct its review.
See Spotify's Time to Play Fair website and Apple's Addressing Spotify's Claims press release for each company's stance.

Article Link: Spotify on Apple's Response to App Store Dispute: 'Every Monopolist Will Suggest They Have Done Nothing Wrong'
 
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idbuythatforadollar

macrumors newbie
Aug 22, 2017
8
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I don’t understand their logic, they’re mad that Apple takes a 15% cut for distributing and promoting their app while they do the same thing with artists?

They fail to mention that App Store brings in double as much revenue compared to Google Play Store, if you’re not happy with Apples 15% cut, just use Play Store and see how it goes for your business.


And also, Spotify decided to go to court so they could have a bigger cut from the poor artists while Apple decided not to. They’re such a hypocrite
 

ipedro

macrumors 601
Nov 30, 2004
4,670
4,966
Toronto, ON
Spotify sees the writing on the wall. Apple is disrupting Spotify’s defacto monopoly on speakers by offering Apple Music built in.

Until recently, when someone purchased a connected speaker, Spotify was the only real choice even for iPhone users because Apple Music wasn’t offered. Apple Music is now spreading to these speakers so that people have a real choice and Spotify is scared.
 

Bornee35

macrumors 6502
May 6, 2013
384
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Canada
Apple makes the hardware and software. They can do whatever they want with their platform. Nobody is forcing Spotify to be available on iOS, and can make their own mobile device and operating system if they want to do what their heart desires. Microsoft was fined over IE because they forced the default app on hardware that didn't belong to them. Apple's vertical ecosystem gives them freedom to do whatever they want.
 

paul4339

macrumors 65816
Sep 14, 2009
1,371
614
Nice reply by Apple.
I still think it’s a publicity stunt by Spotify to bring awareness using negative ‘advertising’ (which, I guess, is fair game in business)

I’m not sure why they need to:

- Just continuously make your service better and promote why it’s better.. Lots of people already use Spotify because they like it better than AM.

- they already have twice as much customers than Apple.

- the revenue to Apple is minuscule compared to their overall revenue. They get even more revenue from leveraging the customer bases of carriers ... and they get benefit of attracting a lot of ‘free’ subscribers that pay no revenue to Apple.

- if you want to make a complaint to the EU, sure go for it, but then following up by making statement to Variety and gripe on blog? What are they trying to achieve? Sympathy thru negative ad campaigning about how bad Apple is?

Maybe I’m wrong, but it sure appears like just a big gripe.

Confused.
 
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pika2000

macrumors 603
Jun 22, 2007
5,413
4,657
Stop complaining and start paying the artists!
This.
Spotify realizes that they don’t really have a sustaining business model. They cut their supply (artists & labels) first by paying them less. They cannot increase their prices due to competition, so next is to cut anything that’s costing them more, which is whatever fees they need to pay.

Apple already showed the facts and inconsistencies of Spotify’s complaints, and now Spotify responded simply by saying “nu uh” and calling Apple names without providing any counter evidence to support their original complaint. Sounded like a child.
 

mrex

macrumors 68040
Jul 16, 2014
3,284
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europe
Apple makes the hardware and software. They can do whatever they want with their platform. Nobody is forcing Spotify to be available on iOS, and can make their own mobile device and operating system if they want to do what their heart desires. Microsoft was fined over IE because they forced the default app on hardware that didn't belong to them. Apple's vertical ecosystem gives them freedom to do whatever they want.
sometimes i real wish that big developers pull their app from appstore - especially after comments like this.
 

tasset

macrumors 6502a
May 22, 2007
567
190
Someone square this circle for me; when a retailer offers iTunes gift cards at a 15-20% discount, which is often the case in the US at least during many holidays, who is actually eating the discount? Is it Apple or is it the retailer? I have always assumed it’s a marketing promotion by Apple as retailers have such small margins already.
So in this case, if Apple were to cut subscription fees for services like Spotify to 10% or less, would Apple actually be losing money then? I have a feeling Apple wouldn’t allow gift card purchases for subscriptions much longer if that’s the case.
 
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Ishayu

macrumors regular
Jan 18, 2012
184
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They are angry that Apple considers iOS users their customers?

That's really stupid. A user that uses an iPhone to go on the App Store to download Spotify is an Apple AND a Spotify customer simultaneously.

The heart of the issue is whether or not Apple is using its position to make it more difficult for Spotify to get customers. That's it.
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Funny how this complaint wasn’t filed in the US...
Spotify is a Swedish company, so it really is not that funny or weird.
 

gnipgnop

macrumors 65816
Feb 18, 2009
1,328
1,506
"This is evident in Apple's belief that Spotify's users on iOS are Apple customers and not Spotify customers, which goes to the very heart of the issue with Apple."

I'm surprised Spotify's lawyers would allow this type of statement, since the "not Spotify customers" part doesn't appear in Apple's response. Apple does say that it connects Spotify to "our users", but that doesn't actually contain the meaning that Spotify wants it to.