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Rhetoric Continues Between Spotify and Apple

The war of words continues between Spotify and Apple after the streaming company referred to Apple as a monopoly in an article in Variety. The streaming company, who filed a compliant against the Cupertino, California tech giant last week, responded to a terse rebuttal from Apple at the end of the week over the weekend.

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.

Spotify via Variety

At the heart of the issue for Spotify is that the App Store and the percentage Apple takes of each in-app purchase (which they refer to as a “tax”) is unfair and stifles competition and innovation. Apple’s response is that Spotify wants all the benefits of the App Store without having to pay for it. Apple’s response was that they have tried to work with Spotify and that they are providing the back-end secure purchase platform on their own dime so the 30% fee for first year subscriptions is to help offset that cost.

With the complained filed to the European Commission, it could be an interesting case to watch. The Commission could side with Spotify and see the App Store and the fees associated with it as anti-competitive. Equally, they could see Apple’s point, especially if they provide evidence that they have attempt to support the streaming company and they have not taken advantage of it.

In either case, it won’t be decided until likely the end of this summer.

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