In March, Spotify filed a criticism in opposition to Apple with the European Commission over the so-called “Apple tax” and claims of restrictive guidelines relating to the App Store. In the time since, Apple has responded with the launch of a web site that takes intention on the anti-trust, anti-competitive claims in opposition to it, and most lately, a deep dive into how the method of app approvals works, by means of a CNBC profile. Now, Apple has responded to the EC criticism with its personal submitting that claims Spotify is barely paying this “Apple tax” on lower than 1 p.c of its paid subscribers.
This information was first reported by Music Business Worldwide (MBW) and German website Der Spiegel.
Specifically, Apple’s submitting says that Spotify solely pays a 15% “app tax” (income share) on simply zero.5% of its 100 million premium subscribers, or round 680,000 clients. This income share solely impacts these clients Spotify acquired throughout the 2014-2016 timeframe who signed up for the subscription by way of an in-app buy. Afterward, Spotify switched off the choice to enroll within the app.
This is in distinction to the declare made by Spotify CEO Daniel Ek on the corporate’s weblog in March, the place he wrote that “Apple requires that Spotify and other digital services pay a 30% tax on purchases made through Apple’s payment system.”
In addition, MBW reviews, citing an unnamed supply, that Spotify pays even lower than the usual 15% for these clients who signed up by way of in-app buy resulting from label reductions. The supply advised the outlet that Spotify simply needs to “pay nothing.”
However, Spotify’s declare goes past the Apple tax.
It additionally mentioned that Apple used its App Store energy to penalize the competitor in different methods — like limiting Spotify’s capacity to speak with clients, and even ship emails to its iOS customers. Spotify mentioned Apple additionally blocked its iOS upgrades — one thing it delivered to gentle years in the past. Apple, in the meantime, has all the time maintained it has handled Spotify like some other app developer.
Apple’s responses to those latter factors have been additionally sneaked into the latest CNBC piece the place a “longtime Apple veteran” who was solely recognized as “Bill,” made sure to inform the information website that he had “called Spotify when an update was rejected” — e.g. as a result of Spotify had been emailing clients and asking them to pay the music streamer straight exterior the App Store.
In addition to Spotify’s EU criticism, Apple is going through different assaults in opposition to its App Store within the U.S. courts.
The U.S. Supreme Court in May dominated in opposition to Apple…