Tech: "You're anticompetitive," Spotify tells Apple

nikko0l4l

Music streamer Spotify, whose chief rival in the business of music streaming is Apple Music, has a few choice words for Apple. More precisely, it is one word that Spotify accuses Apple of being and that is "anticompetitive." It seems that Apple rejected Spotify's request to update its iOS app. As a result, Spotify general counsel Horacio Gutierrez sent a letter to Apple general counsel Bruce Sewell. In the letter, Gutierrez accused Apple of "causing grave harm to Spotify and its customers," by rejecting the update to the app.

According to Spotify's letter, Apple told its rival that it would have to use Apple's iTunes billing system if Spotify wanted to use its iOS app to "acquire new customers and sell subscriptions." Gutierrez claims that Apple is trying to use the App Store approval process as a way to make Spotify less of a competitive threat to Apple Music. Currently, Spotify has 100 million users, although only 30 million of them pay for the service. The remaining 70 million use the ad supported free tier. As of this month, Apple has 15 million paid subscribers to Apple Music.

Spotify's main bone of contention is the iTunes billing system. Apple does not force subscription services to use it, but those that don't are not allowed to use another payment system inside the app. On the other hand, those subscription services that do use the iTunes billing system have to pay Apple 30% of revenue. Spotify has had iOS customers pay the fee by charging $13 to those who subscribe to the service using Spotify's iOS app. The usual price that Spotify charges for monthly service outside Apple's eco-system is $10.

Quote:

Originally posted by Horacio Gutierrez

"This latest episode raises serious concerns under both U.S. and EU competition law. It continues a troubling pattern of behavior by Apple to exclude and diminish the competitiveness of Spotify on iOS and as a rival to Apple Music, particularly when seen against the backdrop of Apple’s previous anticompetitive conduct aimed at Spotify … we cannot stand by as Apple uses the App Store approval process as a weapon to harm competitors."

Yesterday, possible Hillary Clinton running mate Elizabeth Warren (D-Mass.) said that "Apple has long used its control of iOS to squash competition in music."

Source: http://www.phonearena.com/news/Youre...letter_id82772

Dark Horse

Apple has always been like that though. Apple stands away from the competition, takes risks, and creates their own ecosystem.

ItsRic

*googles anticompetitive*

AlphaOmega

Apple Music is growing RAPIDLY and it just passed it's one year mark..that alone is incredible.

Spotify only has 30 million paid subscribers, and Apple already has 15 million and don't even offer free streaming the way Spotify does? THAT is competitive

I love how Apple has been silent but deadly, just letting the numbers grow. Spotify has been on the attack ever since they were threatened. Love it.

Gabriel

Regardless, I absolutely hate the way Apple music works on my computer

I just can't support it.

But Apple should be sued for doing that.

Truth Teller

Quote:

Originally posted by AlphaOmega

I love how Apple has been silent but deadly, just letting the numbers grow. Spotify has been on the attack ever since they were threatened. Love it.

This is a case of a relatively small company fighting against a greedy industry giant. Of course Apple's numbers are growing. They have the biggest platform for the service to be successful and they have the connections and money to get exclusives. It's your right to root for the bad guy, but it's hard for me to comprehend.

_____________________

I'm assuming Apple has plenty of advisors making sure none of these policies is directly breaking any laws, unfortunately. I hope someone can intervene, before they amass enough power to create a monopoly (in multiple fields). That never ends well

rihannabiggestfan

Spotify >

RatedG²

I agree.

When one company gets too big and powerful it really messes up the smaller ones. The monopoly Apple wants to have needs to be stopped

James Maslow

Quote:

"You're anticompetitive," Spotify tells Apple

Does that mean they heard the news about Apple buying Tidal?

Adonis

Spotify wasn't saying that a month ago. They were bragging about how Apple helped their business grow. My how the times change from month to month.

I notice Spotify says this stuff every year around this time when the new Spotify App is in the App Store approval process...so they can try and get special treatment for their app over that of other other developers and companies.

Adonis

Quote:

Originally posted by RatedG²

I agree.

When one company gets too big and powerful it really messes up the smaller ones. The monopoly Apple wants to have needs to be stopped

Apple doesn't have a monopoly nor has it ever. They are in business to make money not have a monopoly. Monopolies are overrated. It's hard to be a monopoly with at best 20% market share for well pretty much everything except downloads which are declining.

Letemtalk

The problem here is that the only way you can get the Spotify App for iPhone and other iOS devices is the App Store and Apple has a rule that any in App purchase has to give 30% to Apple.

Not only that, but it appears that Apple was trying to stop Spotify offering a promotion from within the App.

Quote:

Spotify was using its iOS app to highlight a promotion offering new Spotify customers three months of service for $0.99, something Apple didn't like.

Apple reportedly forced Spotify to stop advertising the promotion in the iOS app or face the removal of the app from the App Store. Spotify stopped the advertisements, but also decided to stop offering App Store subscription options, a move that's led to the current disagreement between the two companies.

http://www.macrumors.com/2016/06/30/...cted-by-apple/

Apple has a large percentage of the Smartphone market .... yes, there are a lot of cheap Android phones out there (and some very good ones), but Apple have a large percentage of the market that actually use their smartphone as a smartphone, rather than just using it as a dumb phone with occasional search to look up an address or something like that.

Caesar

Quote:

Originally posted by Adonis

Spotify wasn't saying that a month ago. They were bragging about how Apple helped their business grow. My how the times change from month to month.

I notice Spotify says this stuff every year around this time when the new Spotify App is in the App Store approval process...so they can try and get special treatment for their app over that of other other developers and companies.

.

Caesar

So Apple should just automatically let Spotify updates slide easily?
Oh please, Spotify needs to get in back of the line and WAIT for their update to be approved
like every other app.

Haus

Spotify are so dumb with their app store argument. Apple is solely responsible for making the app store a thing, it makes no sense that Apple wouldn't take a portion of each sale... they made the infrastructure that Spotify is using. No one's forcing Spotify to charge $13, they could charge $10 and only profit $7 but they can't afford that. Who pays via in app purchase anyway?

Lorenzo22

Quote:

Originally posted by James Maslow

Does that mean they heard the news about Apple buying Tidal?

My first thought when I read the thread title

alexanderao

Quote:

Originally posted by Letemtalk

The problem here is that the only way you can get the Spotify App for iPhone and other iOS devices is the App Store and Apple has a rule that any in App purchase has to give 30% to Apple.

Not only that, but it appears that Apple was trying to stop Spotify offering a promotion from within the App.

http://www.macrumors.com/2016/06/30/...cted-by-apple/

Apple has a large percentage of the Smartphone market .... yes, there are a lot of cheap Android phones out there (and some very good ones), but Apple have a large percentage of the market that actually use their smartphone as a smartphone, rather than just using it as a dumb phone with occasional search to look up an address or something like that.

Rose Mulet

Ban all streaming services and discontinue Apple Music so people can use iTunes again

Make people pay for music that deserves to be paid for

I'll respect you a lot more if you do.

Adonis

Quote:

Originally posted by Letemtalk

The problem here is that the only way you can get the Spotify App for iPhone and other iOS devices is the App Store and Apple has a rule that any in App purchase has to give 30% to Apple.

Not only that, but it appears that Apple was trying to stop Spotify offering a promotion from within the App.

http://www.macrumors.com/2016/06/30/...cted-by-apple/

Apple has a large percentage of the Smartphone market .... yes, there are a lot of cheap Android phones out there (and some very good ones), but Apple have a large percentage of the market that actually use their smartphone as a smartphone, rather than just using it as a dumb phone with occasional search to look up an address or something like that.

All developers have to follow the same rules. Why should Spotify get special treat over everyone else?

Sunshine.

I mean, isn't the App Store kind of Apple's domain? As unfair as it may seem, Apple kind of built and invested in their App store infrastructure and should be able to leverage all their company's hardwork to generate profit.

You can't take up residence in someone else's home and then demand they also set aside a portion of the house for you to start a business, without additional rent/fees.

Apple will win in the end. Why? Because they've invested in the hardware and its supporting ecosystem. Ultimately, what Spotify has to offer isn't really a unique product. It's just streaming music—a convenience service that Apple can just as easily implement. Google did, Tidal did, Microsoft did, and now YouTube is doing. Don't get mad at Apple because they also have the foundation to support it.