Amid the ongoing legal battle between Epic Games and Apple, Spotify’s Chief Legal Officer and Head of Global Affairs Horacio Gutierrez has penned an anti-app store post in the Wall Street Journal summarizing Spotify’s problems with Apple.
Gutierrez saysthat Spotify is one of the few companies to insist that Apple is a “ruthless bully who uses its dominance to slow down competitors.” The percentage of Apple taking from subscriptions means that Spotify must either increase its prices for those who sign up through the App Store or refuse to offer subscriptions on iOS at all, which Spotify has chosen. Apple’s “antisteering” rules prevent Spotify from directing iPhone and iPad customers to the Spotify website to sign up, which, according to Spotify, gives Apple Music some great advantages.
The company has also argued that Spotify pays 15% of its revenue on just 0.5% of its subscriptions. But that’s because Apple’s exorbitant 30% tax on new subscriptions forced us to turn off in-app purchases in 2016. It made more business sense to cut iPhone and iPad users off the road to subscriptions than to accept the 30% fee for new subscriptions.
“App Store rules limit innovations”
Gutierrez points out the many regulatory issues Apple is facing in Europe and the United States. The European Commission found in April that Apple was violating EU competition law with Apple Music. In the same month, the Senate Antitrust Subcommittee questioned Apple’s App Store policies. Spotify, Tile and others attended the latter hearing and said that if the App Store rules are not changed, Apple will take over the Internet, which “restricts innovation, suppresses small businesses and virtually eliminates customer choice”.
Spotify wants to be treated fairly
Spotify asks the US to speed up its regulatory initiatives against Apple with “urgent, tightly tailored updates” of antitrust law to “end such outrageous abuses.” Gutierrez goes on to explain that Spotify is not asking for special treatment but rather wants “fair treatment”. He sums up his contribution by stating that Apple’s “ability to strangle its competitors is unprecedented.” He writes that those who are able to “do something” have now “seen behind Apple’s facade” and now act on behalf of “innovators and consumers around the world”. (Photo by Unsplash / Sara Kurfeß)
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