Apps, Technology

Apple hits back Spotify against App Store Tax Complaint

Apple has fired back against Spotify in an unusual press release that argues the music streaming service “wants all the benefits of a free app without being free.”

Spotify filed an antitrust complaint against Apple in Europe earlier this week, with CEO Daniel Ek arguing that App Store policies give Apple an “unfair advantage at every turn.”
As Spotify points out, that revenue share is 30 percent for the first year of an annual subscription — but they left out that it drops to 15 percent in the years after.” Ek had complained about the 30 percent “tax” that Apple levies on subscriptions made from within the app.

Apple further notes that most Spotify customers use the free version of the app and that many premium subscribers are on plans promoted by mobile carriers, neither of which makes any money for Apple. “A tiny fraction of their subscriptions fall under Apple’s revenue-sharing model,” Apple says. “Spotify is asking for that number to be zero.”

The statement quotes

Let’s be clear about what that means. Apple connects Spotify to our users. We provide the platform by which users download and update their app. We share critical software development tools to support Spotify’s app building. And we built a secure payment system — no small undertaking — which allows users to have faith in in-app transactions. Spotify is asking to keep all those benefits while also retaining 100 percent of the revenue.

Spotify wouldn’t be the business they are today without the App Store ecosystem, but now they’re leveraging their scale to avoid contributing to maintaining that ecosystem for the next generation of app entrepreneurs. We think that’s wrong

What do you think about this? Let us know in the comments below

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