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

[FreakinEurekan]

This narrative about calling Apple a “monopoly” is just so wrong. The App Store is a platform with millions of apps, and there’s plenty of competition. If Apple made every app, they’d have a point.

I'm as big an Apple fan as you'll find, but... Apple IS in the streaming music business, and they're both a provider of Spotify service via the App Store, and a competitor with Apple Music. Some of Spotify's complaints don't hold true, but some do.

Spotify isn't like Uber or Deliveroo, the item being "Purchased" is delivered directly through the app - so Apple does deserve a commission. 30% the first year and 15% thereafter is what it is now, there's room for debate on the amount and how it's levied but Apple IS adding value so some compensation makes sense.

But, by offering a first-party service and offering specific advantages not available to competing third-party services does seem anticompetitive. You can't do Spotify on HomePod for example, and Spotify claims they're being restricted with Siri and Apple Watch (I don't know personally, I don't use Spotify or Apple Music myself).

I think Elizabeth Warren might be on the right track: https://www.macrumors.com/2019/03/08/elizabeth-warren-break-up-tech/ - let Apple keep hardware and OS, but any apps should be spun off to independent companies with equal access to App Store.

 

[Heineken]

I think they still offer IAP for old subscribers, like Netflix does, at least in Europe so for those people they still pay the 30 or 15% cut

In Europe in app purchases are disabled for Spotify already.

 

[julesme]

One middleman complaining about another middleman!

 

[macfacts]

I am not seeing where Apple has done anything wrong in this situation. It seems that Spotify is just bitter because they have to pay Apple to profit from their platform.

I'm curious why Apple has responded to spotify's complaint so fast. Faster than Apple's response to privacy bugs in iOS.

Apple's fast response shows me apple knows spotify's complaint is valid.

 

[DNichter]

I'm curious why Apple has responded to spotify's complaint so fast. Faster than Apple's response to privacy bugs in iOS.

Apple's fast response shows me apple knows spotify's complaint is valid.

That’s all assumption. They can complain all they want, but it doesn’t necessarily mean Apple did anything wrong here.

 

[Heineken]

I'm curious why Apple has responded to spotify's complaint so fast. Faster than Apple's response to privacy bugs in iOS.

Apple's fast response shows me apple knows spotify's complaint is valid.

They are not valid I assure you.

 

[rjp1]

The comments here are hilarious. The majority of them are anti-consumer. I've never used Spotify and never will. I actually use Apple Music. However, I 100% support Spotify.

I'm always amazed at how a lot of Apple customers put Apple before themselves lol

 

[macfacts]

The comments here are hilarious. The majority of them are anti-consumer. I've never used Spotify and never will. I actually use Apple Music. However, I 100% support Spotify.

I'm always amazed at how a lot of Apple customers put Apple before themselves lol

A lot of Apple customers are also apple shareholders. Makes sense now?

 

[cmaier]

The comments here are hilarious. The majority of them are anti-consumer. I've never used Spotify and never will. I actually use Apple Music. However, I 100% support Spotify.

I'm always amazed at how a lot of Apple customers put Apple before themselves lol

Putting apple before Spotify is not putting apple before ourselves. Spotify is hardly acting out of benevolent concern for the consuming public. Nor do they even care about music.

 

[Heineken]

The comments here are hilarious. The majority of them are anti-consumer. I've never used Spotify and never will. I actually use Apple Music. However, I 100% support Spotify.

I'm always amazed at how a lot of Apple customers put Apple before themselves lol

No one is putting Apple before themselves. There is only one question here: does Spotify have a case and they don't. Case closed. The fact that they complained to the EU and not in the US shows that their "case" is as strong as a snowflake and they are hoping for EU to lean towards them.
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A lot of Apple customers are also apple shareholders. Makes sense now?

Wow, not the sweetest muffin in a box are you?

 

[Naraxus]

He’s not wrong you know

 

[recoil80]

In Europe in app purchases are disabled for Spotify already.

Their support page still states IAP is disabled for NEW customers, so either they haven't updated it or some people are still paying through IAP. I think it is the latter, so people with existing subscription continue to pay.
In the support page they say

It was possible to pay for Spotify Premium using Apple’s in-app payment system (iAP). However, this has been discontinued for new subscribers.

and in my countries page (different from the English one) they even state:

That's because Apple requested an additional fee over the standard one, so we decided to cut the middle man and cut the costs for you.

I didn't know about the additional fee. The French and Spanish pages seems to claim the same thing. So maybe something different happened in EU?

But anyway, new customers can't, and it is the same with Netflix.

 

[macfacts]

Apple is infamous for renegotiating their fees with suppliers. I find It hard to believe that apple is paying artists more. Citation please.

During apple music's 3 month free trial, when users were streaming free music, apple set the contract to pay artists $0. Compare that with spotify's free tier, Spotify still pays artists.

 

[Heineken]

Their support page still states IAP is disabled for NEW customers, so either they haven't updated it or some people are still paying through IAP. I think it is the latter, so people with existing subscription continue to pay.
In the support page they say

It was possible to pay for Spotify Premium using Apple’s in-app payment system (iAP). However, this has been discontinued for new subscribers.

and in my countries page (different from the English one) they even state:

That's because Apple requested an additional fee over the standard one, so we decided to cut the middle man and cut the costs for you.

I didn't know about the additional fee. The French and Spanish pages seems to claim the same thing. So maybe something different happened in EU?

But anyway, new customers can't, and it is the same with Netflix.

I have a very old Spotify account and it is disabled.

 

[racerhomie]

I say let the lawyers decide it. But I stand with apple over here. Apple doesn’t own a monopoly on any market. If you don’t like their rules don’t play in it.
Funny enough ,Spotify’s iOS app is much better than the Droid version last time I checked

 

[Jakexb]

So somehow Apple, with on 25% market share in Europe is a monopoly?

 

[recoil80]

I have a very old Spotify account and it is disabled.

A premium account?
So you payed via IAP and suddenly were forced to pay outside app?
I think the only people still able to pay via IAP are the one with an existing subscription and it makes totally sense.
I too have an old Netflix account, but I can't pay in app. Never had, in fact, I started paying on their site.

 

[Roger67]

Reading the comments here sounds like many of you would also defend Microsoft in the 90s.

Embarrassing.

Extreme brand loyalty really is amazing. Even paying much more for less is good.

 

[Heineken]

So somehow Apple, with on 25% market share in Europe is a monopoly?

Einstein was right when he said that only two things are infinite, the universe and human stupidity.
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A premium account?
So you payed via IAP and suddenly were forced to pay outside app?
I think the only people still able to pay via IAP are the one with an existing subscription and it makes totally sense.
I too have an old Netflix account, but if I can't pay in app. Never had, in fact, I started paying on their site.

Yep. I terminated today and have sent a **** you letter. Good riddance, Spotify.

 

[cmaier]

http://pepperdine-graphic.com/spotify-steals-from-fans-and-artists-alike/
https://www.digitalmusicnews.com/2017/06/21/spotify-million-royalty-indie-tunecore/
http://thehowleronline.org/is-spotify-ripping-off-musicians-yes/
https://www.theverge.com/2015/12/7/9861372/spotify-year-in-review-artist-payment-royalties
https://www.telegraph.co.uk/culture...ims-it-pays-just-100-for-a-million-plays.html
http://www.metaltalk.net/news_seventeen/musicians_file_spotify_claim.php

 

[paul4339]

No one is putting Apple before themselves. There is only one question here: does Spotify have a case and they don't. Case closed.

Bingo.
All this whining on blogs, etc is just trying to get public sympathy.

Netflix just said, ok, fine thanks for the all customers you gave us, no more subscriptions thru App Store, bye. Subscriptions gotta go thru our web page from now on.

 

[2010mini]

I think they still offer IAP for old subscribers, like Netflix does, at least in Europe so for those people they still pay the 30 or 15% cut

But for new users Apple doesn't get a cent. So it would be even in their interest to have IAP for those people and get a smaller cut instead of nothing at all, that's why I think they'll strike a deal eventually.

Apple really does not need to bend to Spotify. Spotify needs Apple not the other way around and They know it. Spotify had years headstart in the music streaming business. They were the defacto app on all Smart speakers. In a couple of years Apple has almost half the paying subscriber base as Spotify and growing. Apple is now becoming Available on other platforms.

Instead of whining, Spotify should be more worried about turning their huge free user base into paying customers.

 

[Jakewilk]

Everything that Apple said is true.
But 30%? Are you kidding me, even 15%?
I would think services like this would expect 1-5%. Apple is greedy, pure and simple.

15% is the industry standard, this is not apple being greedy, this is how business is done in app stores

Edit: it’s also not cheap to vet and curate apps with real humans

 

[Heineken]

Bingo.
All this whining on blogs, etc is just trying to get public sympathy.
Netflix just said, ok, fine, no more subscriptions thru App Store, you gotta go thru our web page from now on.

Indeed and I subscribe to Netflix just fine, as a matter of fact since I hate in-app purchases I have always subscribed through the web site.

 

[lederermc]

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.

Isn't it just a problem when they except payment via the IOS app/iTunes account. Can't they turn that off like Amazon Prime Video and pay nothing to Apple.