Spotify Lodges Complaint Against Apple Over Unfair Competition
Last updated July 8, 2021
- Spotify founder and CEO Daniel Elk have spoken out against Apple’s alleged unfair treatment to the music streaming service.
- The tech giant has allegedly put streaming companies at a disadvantage with its App Store practices.Â
- The European Commission has received a formal complaint from Spotify, which could lead to some regulations coming into effect.
Spotify has filed a complaint with the European Commission (EC) against Apple claiming that App Store’s competition is heavily stifled. The music streaming giant has claimed that Apple puts other players at a disadvantage on the App Store using its monetization practices.
Spotify and other services have to pay Apple 30% tax for all purchases made via Apple’s payment system, which forces Spotify’s subscription costs to go up. In comparison, Apple Music does not fall under the taxation scheme as it is Apple’s own service. Spotify had raised concerns over the 30% fee in the past as well when Apple Music launched in 2015, requesting users to subscribe to the service directly instead of using iTunes.
https://www.youtube.com/watch?v=l8SShgWqJvg
Some service providers like Netflix have stopped using Apple’s payment services but doing so is not a viable option. Spotify has claimed that bypassing the Apple payments system leads to restrictions implemented by the tech giant. The music streaming service has also been restricted from integrating with Apple Watch, HomePod smart speaker and Apple Siri.
Spotify has requested fair treatment across the board for all services. Apps like Deliveroo and Uber are not subjected to tax and do not have many restrictions that the music streaming service has to face. The payment system has also concerned Spotify as users are locked into using Apple’s payment system due to discriminatory tariffs.
Spotify and Deezer have asked the European Union to push rules to protect app developers from companies like Apple, but it was not a formal complaint. With an official complaint being filed as the streaming companies have been unable to come to an agreement with Apple, the European Commission (EC) may have to step in and implement ground rules.
What do you think about the complaint about unfair competition against Apple? Let us know in the comments below. Don’t forget to like and subscribe to this post on our socials on Facebook and Twitter.
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