Apple Says Spotify Seeks to Keep All Benefits of App Store Without Making Any Contributions to Marketplace

Apple today responded to Spotify's recent complaint with the European Commission over its App Store practices in a press release, referring to it as "misleading rhetoric." Apple adds that Spotify "seeks to keep all of the benefits of the App Store ecosystem" but "without making any contributions to the marketplace."

spotify complaint apple eu
The intro of Apple's press release:

We believe that technology achieves its true potential when we infuse it with human creativity and ingenuity. From our earliest days, we've built our devices, software and services to help artists, musicians, creators and visionaries do what they do best.

Sixteen years ago, we launched the iTunes Store with the idea that there should be a trusted place where users discover and purchase great music and every creator is treated fairly. The result revolutionized the music industry, and our love of music and the people who make it are deeply engrained in Apple.

Eleven years ago, the ‌App Store‌ brought that same passion for creativity to mobile apps. In the decade since, the ‌App Store‌ has helped create many millions of jobs, generated more than $120 billion for developers and created new industries through businesses started and grown entirely in the ‌App Store‌ ecosystem.

At its core, the ‌App Store‌ is a safe, secure platform where users can have faith in the apps they discover and the transactions they make. And developers, from first-time engineers to larger companies, can rest assured that everyone is playing by the same set of rules.

That's how it should be. We want more app businesses to thrive — including the ones that compete with some aspect of our business, because they drive us to be better.

What Spotify is demanding is something very different. After using the ‌App Store‌ for years to dramatically grow their business, Spotify seeks to keep all the benefits of the ‌App Store‌ ecosystem — including the substantial revenue that they draw from the ‌App Store‌'s customers — without making any contributions to that marketplace. At the same time, they distribute the music you love while making ever-smaller contributions to the artists, musicians and songwriters who create it — even going so far as to take these creators to court.

Spotify has every right to determine their own business model, but we feel an obligation to respond when Spotify wraps its financial motivations in misleading rhetoric about who we are, what we've built and what we do to support independent developers, musicians, songwriters and creators of all stripes.

Apple goes on to rebut each of Spotify's accusations listed on its Time to Play Fair website on a point-by-point basis.

Apple says the only time it has rejected Spotify app updates is when Spotify has tried to sidestep the ‌App Store‌ rules. Apple also says it has reached out to Spotify about Siri and AirPlay 2 support on several occasions and approved the Spotify app on Apple Watch with the same process and speed as any other app.

Apple adds that "Spotify wants all the benefits of a free app without being free," noting that the "majority of customers use their free, ad-supported product, which makes no contribution to the ‌App Store‌."

Spotify wouldn't be the business they are today 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.

Apple says the only requirement for developers is that any digital goods and services be purchased inside the app using Apple's in-app purchase system. Apple takes a 30 percent cut of revenue for the first year of an annual subscription, but says Spotify left out that it drops to 15 percent in the years after.

Apple concludes by saying it shares Spotify's goal of sharing music but has a different view of how to achieve that goal. Apple takes aim at Spotify "suing music creators" after a decision by the U.S. Copyright Royalty Board requiring increased royalty payments, calling it "just wrong," although Spotify already disputed that allegation.

Tag: Spotify

Top Rated Comments

omihek Avatar
28 months ago
Apple is right.
Score: 66 Votes (Like | Disagree)
Cosmosent Avatar
28 months ago
I am NOT defending Spotify, but the iOS App Store is in-deed Catastrophically Broken !

AAPL Controls the Narrative, & does so to the tune of 100% !

AAPL makes their App Recommendations based-upon "Politics," NOT which apps are best for their Users.

The list goes on & on ...

"App Discovery" of good apps is NON-existent !

How much search filtering does AAPL offer ??? that one is easy to answer, except for keywords, Zero !

AAPL hit $1T USD in market cap last year ... yet, exactly how many (major) App Success Stories have occurred for apps that started life since Cook took over ... I know of NONE !
Score: 35 Votes (Like | Disagree)
AppleTrap Avatar
28 months ago
Apple charges 99$ a year to host an app on its platform. What is this charge for? To cover hosting fees?

Then Apple charges 30% of every sale Spotify makes. What is this for? I can't imagine hosting charges to be that high. And Apple makes no contribution to the development of Spotify and its products.

Sure it is Apple's platform and they can do whatever they want with it. But are they being fair?
Score: 32 Votes (Like | Disagree)
rjp1 Avatar
28 months ago
30% is extremely high for hosting a tiny amount of static content in the app store and providing a download. The big thing is this is the only way to get apps. Is that worth 30%?

As consumers, we bought and own the devices. Therefore, we should be able to use them however we want. If that means installing from a 3rd party app store or directly from a developer's website, then so be it. Let us check a box saying we understand that doing so may result in a degraded experience and/or require wiping the device to get technical support, but don't flat out prevent us from doing so.

For businesses, they should be given the chance to compete. The cost to store the data for an app store is small. The cost for providing downloads is small. If someone wants to do an app store and only take 10% or whatever, then they should be given the chance. If Apple is so confident in the value they are providing developers, then it won't matter that there is competition.

The reality is they are abusing their power with the 30%. They could raise it to 90% tomorrow and developers would just have to deal with it. This is the only way to distribute their apps, so they will take some money over no money. I welcome the breakup of stuff like this.

The phone/tablet/whatever is just a computer. Nobody would tolerate this nonsense if Windows didn't allow you to download a program outside of their store. Just because "phone" - doesn't make it right.
Score: 32 Votes (Like | Disagree)
tann Avatar
28 months ago
Ridiculous that they have arbitrary rules like digital items require purchasing through IAP... why? Because then Apple get a cut for nothing.

If you look into this case it's rife with anti-competitive behaviour. Especially true now giving Apple has their own direct competitor that does indeed have unfair advantages.
Score: 22 Votes (Like | Disagree)
developer13245 Avatar
28 months ago
The only solution is to open up the iOS platform so developers can sell directly to end users, or through other 3rd party app stores. This works on the Mac platform, so there is no technical reason iOS cannot also work this way.


Also see:
https://forums.macrumors.com/threads/apple-hosts-private-app-store-meeting-with-select-developers.2132523/
Score: 21 Votes (Like | Disagree)

Top Stories

tile sticker e1570533758981

Tile CEO: 'We Welcome Competition From Apple, But We Think It Needs to Be Fair'

Tuesday May 4, 2021 9:51 am PDT by
Just after Apple announced its AirTags, Tile CEO CJ Prober relayed his concerns about competing with Apple in the tracking space, and said that Tile would ask Congress to investigate Apple's business practices specific to Find My and item trackers. Prober this week did an interview with Bloomberg, where he further expanded on Tile's complaints about Apple and why he feels that Tile is...
signal instagram ads3

Signal Shares the Instagram Ads Facebook Doesn't Want You to See

Wednesday May 5, 2021 1:29 am PDT by
Encrypted messaging app Signal has had a series of Instagram ads blocked from the social media platform, after it attempted to show users how much data the Facebook-owned company collects about them and how it's used to push targeted ads. In a blog post, Signal described how it generated the ads to show users why they were seeing them, simply by declaring upfront the information that the...
tracking disabled ios 14 5

Analytics Suggest 96% of Users Leave App Tracking Disabled in iOS 14.5

Friday May 7, 2021 1:51 am PDT by
An early look at an ongoing analysis of Apple's App Tracking Transparency suggests that the vast majority of iPhone users are leaving app tracking disabled since the feature went live on April 26 with the release of iOS 14.5. According to the latest data from analytics firm Flurry, just 4% of iPhone users in the U.S. have actively chosen to opt into app tracking after updating their device...
fortnite apple logo 2

Epic CEO Tim Sweeney Admits App Store's 30% Cut Is Similar to Consoles, Would Have Accepted Special Deal With Apple

Tuesday May 4, 2021 1:54 pm PDT by
Apple's legal battle with Epic Games is continuing on, and during the second day of the trial, Epic Games' CEO Tim Sweeney continued his testimony against Apple. Sweeney was grilled by Apple's lawyers, and made several points seemingly favorable to Apple. In addition to mentioning how he prefers Apple's iPhone and values Apple's privacy policies that he's aiming to dismantle, Sweeney...
snapchat dark mode

Snapchat Rolls Out Dark Mode on iOS

Wednesday May 5, 2021 1:17 am PDT by
Nearly two years following the release of iOS and iPadOS 13, which included native, built-in, and systemwide dark mode, Snapchat, one of the world's most prominent social media networks, has finally rolled out a dark mode theme for iOS users. Snapchat began testing a dark mode theme of its app design late last year with a small group of iOS users. Now, Snapchat says that as of this week, it...
netflix sign up

Apple Discussed 'Punitive Measures' Against Netflix for Dropping In-App Purchases

Wednesday May 5, 2021 11:03 am PDT by
As the Epic Games v. Apple trial progresses into its third day, Apple's internal documents and communications with various companies are continuing to surface, giving us some insight into the dealings that Apple has had around the App Store. Back in December 2018, Netflix stopped offering in-app subscription options for new or resubscribing members and instead began requiring them to sign up ...
iphone 12 preorder purple

Apple Begins Transition to Randomized Serial Numbers With Purple iPhone 12

Wednesday May 5, 2021 9:17 am PDT by
MacRumors previously reported about Apple's plan to switch to randomized serial numbers for future products starting in early 2021, and this transition has now started with the new purple iPhone 12 model in multiple countries. With assistance from Aaron Zollo, host of the YouTube channel ZolloTech, we can confirm that the purple iPhone 12 released last month has a new 10-character serial...
airtag 1

AirTag Anti-Stalking Measures 'Just Aren't Sufficient' Says Washington Post Report

Wednesday May 5, 2021 6:03 pm PDT by
The safeguards that Apple built into AirTags to prevent them from being used to track someone "just aren't sufficient," The Washington Post's Geoffrey Fowler said today in a report investigating how AirTags can be used for covert stalking. Fowler planted an AirTag on himself and teamed up with a colleague to be pretend stalked, and he came to the conclusion that the AirTags are a "new means...
iphone 13 pro max dummy notch

iPhone 13 Pro Max Dummy Model Depicts Smaller Notch

Tuesday May 4, 2021 1:08 pm PDT by
Apple's iPhone 13 models are expected to feature a slimmed down notch, marking the first major change to the TrueDepth camera system since it was introduced in the 2017 iPhone X. We're still months away from the launch of the iPhone 13, but Lewis Hilsenteger of Unbox Therapy managed to get an iPhone 13 Pro Max dummy model that represents what we can expect from the new 2021 device. Dummy...
iPad Pro July Shipping

12.9-Inch iPad Pro Now Delivers as Late as Mid-July

Wednesday May 5, 2021 7:10 am PDT by
While the new 12.9-inch iPad Pro is set to launch in the second half of May, orders placed today are estimated for delivery as late as mid-July on Apple's online store in the United States — some two months later. The new 11-inch iPad Pro is faring better so far, with some configurations available for delivery in the last week of May. The new 12.9-inch iPad Pro features a Liquid Retina XDR ...