Spotify”summarizes its financial motivations in misleading rhetoric about who we are.”
However, Apple did not really address Spotify’s primary argument that its own streaming program. Apple Music is not subject to the same restrictions it imposes on Spotify.
In response, Apple addressed each complaint point by point, while criticizing Spotify’s treatment of musicians and artists. It stated that it has approved nearly 200 app updates. “The only time we have asked adjustments is when Spotify has tried to sidestep the same principles that every app follows”.
It added that”Spotify wouldn’t be the business they are now 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.” (Spotify has 96 million paid subscribers next to Apple’s 50 million.)
Spotify’s main argument was that Apple’s own music service, Apple Music, isn’t subject to the same restrictions of its own program”. Apps should be able to compete fairly on the merits, rather than based on who owns the App Store,” wrote CEO Daniel” We should all be subject to the same fair set of rules and restrictions — including Apple Music”. It added that Apple had often stymied it on program updates and locked it out of Apple services,” such as Siri, HomePod and Apple Watch.” Finally, it noted that Apple had blocked communicating with its own customers on things like special offers.
Whether it will see the Apple and Spotify situation in a similar light remains to be seen. With its most recent rebuttal, though, Apple has drawn the battle lines and showed how it intends to fight the complaint.
With respect to the 30 percent charge on in-app electronic content in the App Store. Apple notes that 84 percent of apps pay nothing, including Spotify’s own ad-supported app. As such”only a tiny fraction of the subscriptions fall under Apple’s revenue-sharing model.
“Spotify has every right to determine their own business model, but we feel a duty to respond when Spotify wraps its fiscal motives in misleading rhetoric about who we are,” the company wrote.
Apple is firing back in reaction to Spotify’s European Commission (EC) complaint. In a newsroom release, the company said that Spotify” attempts to keep all of the benefits of the App Store ecosystem. Without making any contributions to that marketplace. ” It added that the App Store has generated $120 billion for developers while offering users a secure platform and that Spotify is seeking to the side to sidestep the rules that every other app follows.
Finally, Apple suggested that Spotify hasn’t exactly been great for artists, having recently sued music creators after the US Copyright Royalty Board ordered it to boost royalty payments. “Underneath the rhetoric, Spotify’s aim is to make more money off others’ work. And it is not just the App Store that they’re trying to squeeze — it’s also artists, musicians, and songwriters,” it stated.
While Apple charges 30 percent digital revenue in the first year, it is 15 percent after that, it said, noting that Spotify has a double-standard about revenue-sharing. “A significant portion of Spotify’s clients come through partnerships with mobile carriers. This generates no Program Store contribution, but requires Spotify to pay a similar distribution fee to retailers and carriers.”
That’s key because, in the past, the EU has ruled against like tech giants like Microsoft. In that landmark case, it said the company leveraged its Windows ecosystem to promote its own browser ahead of other apps. In a similar case, it also hit Google with a $5 billion fine for abusing its Android platform to support its own Chrome and Search services.
Just this week, Spotify sued music creators after a decision by the US Copyright Royalty Board required Spotify to increase its royalty payments. This is not just wrong, it represents a real, meaningful and damaging step backward for the music industry.
The company expressed surprise about Spotify’s Watch app claim, stating”we reviewed and approved it with the same process and speed with which we would any other app. In fact, the Spotify Watch app is currently the No. 1 app in the Watch Music category.”