Apple Says Spotify Only Pays 15% Fee on About 0.5% of Subscribers in Response to App Store Complaint

Apple has filed a response to Spotify's anticompetitive complaint about the App Store in Europe, noting that Spotify pays Apple a 15 percent commission for only about 0.5 percent of its paying subscribers, according to CNET.

apple spotify
That figure equates to around 680,000 users who subscribed to Spotify through its iOS app, via Apple's in-app purchase system, between 2014 and 2016. This is because Apple only collects a 30 percent commission for the first year of a subscription, at which point the fee drops to 15 percent.

Apple's response comes three months after Spotify announced it had filed an antitrust complaint against Apple with the European Commission over unfair ‌App Store‌ practices. Spotify took particular issue with Apple charging a 30 percent "tax" on ‌App Store‌ purchases, calling it "discriminatory":

Apple requires that certain apps pay a 30% fee for use of their in-app purchase system (IAP) – as is their prerogative. However, the reality is that the rules are not applied evenly across the board. Does Uber pay it? No. Deliveroo? No. Does Apple Music pay it? No. So Apple gives the advantage to its own services.

Apple only charges a commission on in-app purchases tied to digital goods, which is why apps like Uber and Deliveroo are exempt.

Apple also forbids Spotify and other developers from alerting users that they can sign up for a subscription or complete a purchase outside of its iOS app, and disallows Spotify from advertising deals to its customers in the app or by email, as these practices would circumvent Apple's in-app purchase system.

Apple has faced increasing scrutiny as of late over the way it runs its ‌App Store‌. In response, Apple said the App Store "welcomes competition," noting that it was created to be "a safe and trusted place for customers to discover and download apps" and "a great business opportunity for all developers."

Apple previously labeled Spotify's complaint as "misleading rhetoric" and claimed that "Spotify wants all the benefits of a free app without being free."

European Commission regulators will now review Apple's response as part of its probe.

Top Rated Comments

realtuner Avatar
28 months ago
Apple just shot down their entire antitrust case.

If the vast majority of Spotify customers are paying through their website, then how can they possible argue that Apple is a monopoly or abusing their position?
Score: 36 Votes (Like | Disagree)
itsmilo Avatar
28 months ago
Apple also forbids Spotify and other developers from alerting users that they can sign up for a subscription or complete a purchase outside of its iOS app, and disallows Spotify from advertising deals to its customers in the app or by email, as these practices would circumvent Apple's in-app purchase system.

I assume this is the issue? just get rid of this passage ...
Score: 25 Votes (Like | Disagree)
chazwatson Avatar
28 months ago
What an utterly pathetic response from Apple, I’d also like to know where it got these facts from? Did they steal them from Spotify? Or make them up or base them on unverified sources?

Oh well if you make a joke of the European competition commission they’ll be more then happy to make a joke out of you!
You need to calm down.

Spotify publicly announced the number of paid users (https://newsroom.spotify.com/2019-04-29/spotify-reports-first-quarter-2019-earnings/), and Apple knows the number of Spotify subscribers on iOS. It's simple math.

This is Apple's response to the court, so if they are lying they would be in a lot of legal trouble.
Score: 20 Votes (Like | Disagree)
nojkepop Avatar
28 months ago
I can't wait for this complaint to go away regardless of the outcome. I have no horse in this race but Spotify looks so petty over this. I have a hard time believing this is good publicity.
Score: 18 Votes (Like | Disagree)
farewelwilliams Avatar
28 months ago
It's free to operate for Apple, premium or not.
Except, running and maintaining a platform costs billions of dollars every year: App store editorial, app store reviews, server costs of delivering apps, Xcode, API development and maintenance, CloudKit, iCloud drive, push notifications, research and development, MapKit, macOS notary services, app store analytics, in app purchase servers, TestFlight services, etc...

Sure, Spotify doesn’t use every single one of those features, but Apple makes these services available to all developers to use. That’s not free.

If it was so easy to run a platform, Spotify can go fork Android.
Score: 16 Votes (Like | Disagree)
Appleman3546 Avatar
28 months ago
Apple Music pays 0% to Spotify, but Spotify pays 15% to the competition on users still subscribed (which gets passed along to consumers to make Apple Music a cheaper competitor) and Spotify is forbidden by the App Store executive committee from telling users about a competitive alternative to the App Store subscription that drives up the price (which would level the playing field on competitor pricing)...I guess what Apple is saying is that if you want to play ball on Apple's turf, you have to let the home team (Apple) start with two home runs
Score: 14 Votes (Like | Disagree)

Top Stories

Flat 2021 MacBook Pro Mockup Feature

Unreleased Apple Macs and Apple Watches Listed in Eurasian Database Ahead of Fall Product Launches

Monday August 2, 2021 9:34 am PDT by
Apple is preparing for a slew of fall product launches according to new filings that showed up today in the Eurasian Economic Commission database. There are listings for new Mac and Apple Watch models, all of which have previously unknown model identifiers that indicate that they're upcoming devices. There are six new Apple Watch identifiers, including A2473, A2474, A2475, A2476, A2477, and...
ifixit iphone12 mini

Apple to Make Space for Larger Batteries in iPhones, iPads, and MacBooks By Adopting Slimmer Peripheral Chips

Monday August 2, 2021 2:12 am PDT by
For future iPhones, iPads, and MacBooks, Apple plans to use smaller internal components in an effort to increase the size of the device's battery, according to DigiTimes. Image Credit: iFixit Specifically, Apple plans to "significantly increase the adoption" of IPDs or integrated passive devices for the peripheral chips in its products. These news chips will be slimmer in size and allow for...
Apple Watch 7 Unreleased Feature

Apple Watch Series 7 to Focus on One Major Upgrade

Wednesday August 4, 2021 2:12 am PDT by
The upcoming Apple Watch Series 7 will focus on one important feature in an attempt to tempt existing Apple Watch users that have an older device to upgrade, according to recent reports. Apple may skip adding new health sensors to this year's Apple Watch Series 7 in favor of improving the device's battery life. The company is said to be adopting new double-sided System in Package (SiP)...
magic keyboard touch id

Apple Makes Magic Keyboard With Touch ID Available for Separate Purchase

Tuesday August 3, 2021 5:22 am PDT by
Apple has made the Magic Keyboard with Touch ID, which previously was only available with the purchase of the new 24-inch iMac, available for purchase individually for $149. Apple also retails the Magic Keyboard with Touch ID and a numeric keypad for $179. A standard Magic Keyboard without Touch ID or a numeric keypad is available for $99, and a new Magic Trackpad for $129. One major...
iPhone 13 Wi Fi 6E feature update

Wi-Fi 6E Explained: What It Could Mean for iPhone 13 and Beyond

Monday August 2, 2021 8:00 am PDT by
The iPhone 13 is widely expected to come with Wi-Fi 6E capabilities, and while it may seem rather nuanced to the average consumer, with only improved speeds and being "up to date" in the realm of Wi-Fi technology, it's actually a fairly significant improvement, laying the groundwork for much of what we know the future holds. To truly understand Wi-Fi 6E, MacRumors sat down for an exclusive...
applestoredown

Apple's Online Store Temporarily Down [Update: Back Up]

Tuesday August 3, 2021 4:01 pm PDT by
Apple's online Apple Store is down at the current time, and attempting to access it to make a purchase gives the standard "Be Right Back" message. Given that it's a Tuesday night/afternoon in the United States and we're not expecting any new products this week, it's likely that this is a temporary maintenance outage that is not related to a new product release. The Apple Store app is also...
themorningshowcarrell

Apple Decided Not to Buy Reese Witherspoon's 'Hello Sunshine' Media Company

Monday August 2, 2021 2:02 pm PDT by
Reese Witherspoon's media company "Hello Sunshine" recently courted various buyers, and while Apple was one of parties interested in buying Hello Sunshine, the Cupertino company did not end up going through with the purchase. Hello Sunshine was valued at around $900 million thanks to its involvement in popular series like The Morning Show," "Big Little Lies," and "Little Fires Everywhere,"...
iPhone 13 Dummy Thumbnail 2

Apple Brings China's Luxshare Precision into iPhone 13 Supply Chain to Meet Production Targets

Wednesday August 4, 2021 12:19 am PDT by
Apple is tapping more Chinese suppliers as it seeks to meet ambitious targets for iPhone 13 production, according to a new report by Nikkei Asia. Apple is set to produce between 90 million and 95 million iPhones through January, according to a previous Nikkei report, and China's Luxshare Precision Industry has won 3% of orders away from Taiwanese rivals Foxconn and Pegatron. Luxshare will...
mac pro new graphics

Apple Introduces New High-End Graphics Options for Mac Pro

Tuesday August 3, 2021 7:34 am PDT by
Apple today began offering new high-end graphics upgrade options for both the tower and rack versions of the Mac Pro desktop computer. This comes on the same day that Apple started selling the Magic Keyboard with Touch ID on a standalone basis. As noted by CNN Underscored's Jake Krol, the Mac Pro can now be configured with new AMD Radeon Pro W6800X, W6800X Duo, or W6900X graphics when...
General Apps Messages

Android iMessage Competitor Puts Pressure on Apple

Friday July 30, 2021 3:15 am PDT by
Google and the three major U.S. carriers, including Verizon, AT&T, and T-Mobile, will all support a new communications protocol on Android smartphones starting in 2022, a move that puts pressure on Apple to adopt a new cross-platform messaging standard and may present a challenge to iMessage. Verizon recently announced that it is planning to adopt Messages by Google as its default messaging...