Spotify Calls Apple's App Store Restrictions 'An Abusive Power Grab'

At an App Store antitrust hearing that took place today, Spotify and Match Group (the company behind Tinder) accused Apple of abusing its ‌App Store‌ powers to to disadvantage rival services, reports Bloomberg. Spotify chief Legal Officer Horacio Gutierrez said that Apple's rules are "nothing more than an abusive power grab."

app store blue banner spotfiy

"Apple abuses its dominant position as a gatekeeper of the App Store to insulate itself from competition and disadvantage rival services like Spotify," Horacio Gutierrez, Spotify's chief legal officer, told lawmakers. Apple's restrictions on developers, he added, "are nothing more than an abusive power grab and a confiscation of the value created by others.

Spotify has had an ongoing feud with Apple since the debut of Apple Music. ‌Apple Music‌ is priced at $9.99, a price point that Spotify is unable to match due to the 30 percent cut that Apple takes, as it does not leave enough margin for Spotify to make money. Spotify has complained that it has no choice but to charge more on iOS devices and no alternative as Apple does not allow it to offer alternative signup or payment options in its app.

Match, meanwhile, complained that it had wanted to add ID verification rules to boost the app's safety in Taiwan, but Apple would not allow it to do so. Match contacted an Apple executive, who allegedly told the company that it should be glad Apple was not taking all of its revenue. "You owe us every dime you've made," the Apple executive reportedly said.

The "Antitrust Applied: Examining Competition in App Stores" hearing is examining App Stores and mobile competition, and is focused on Apple and Google. Apple's Chief Compliance Officer Kyle Andeer was in attendance to defend Apple.

Andeer stuck to Apple's standard talking points about how the ‌App Store‌ revolutionized software distribution and made it easier for developers to reach new users. Andeer said that Apple's strict ‌App Store‌ rules are designed to meet privacy, safety, and performance standards.

Apple's ‌App Store‌ rules are also facing a U.S. Department of Justice antitrust investigation, and Apple is currently gearing up for a showdown over its ‌App Store‌ policies with Epic Games.

Top Rated Comments

macsimcon Avatar
38 months ago
You know, 25 years ago, Apple was about to self-destruct. Now they're the most valuable company on Earth. Perhaps if these little whiners like Tile, Epic, and Spotify innovated more and complained less, they might be able to compete, survive, and thrive.

This isn't flag football, this is capitalism. Stop your complaining and MAKE something.
Score: 41 Votes (Like | Disagree)
larrylaffer Avatar
38 months ago
The company that pays the least amount of money per play among all the streaming platforms is accusing someone else of a power grab.
Score: 36 Votes (Like | Disagree)
countryside Avatar
38 months ago
Shut up, Spotify! Make your own OS.
Score: 28 Votes (Like | Disagree)
nitramluap Avatar
38 months ago
Says the company who pays SFA to artists. The nerve.
Score: 28 Votes (Like | Disagree)
farewelwilliams Avatar
38 months ago
Except the 30% that Spotify doesn't want to pay supports the indie developers who rely on Apple developer resources to create useful apps for iPhone customers which expands the customer base and makes more money for indie devs in the long run. Don't like that paradigm? Then don't develop for it.
Score: 26 Votes (Like | Disagree)
Darth.Titan Avatar
38 months ago

Apple Music is priced at $9.99, a price point that Spotify is unable to match due to the 30 percent cut that Apple takes, as it does not leave enough margin for Spotify to make money.
Pretty sure Spotify hasn't turned a profit since they opened their business. Not sure how they're keeping the lights on.
Score: 18 Votes (Like | Disagree)

Popular Stories

iPhone 16 Camera Lozenge 2 Perspective Gray

Five Key Upgrades Coming to iPhone 16

Friday March 15, 2024 1:45 pm PDT by
The iPhone is Apple's top-selling product, and it gets an update every year. In 2024, we're expecting the iPhone 16 and iPhone 16 Pro lineup, with an arguably more interesting feature set than we got with the iPhone 15 and iPhone 15 Pro. Subscribe to the MacRumors YouTube channel for more videos. Capture Button All four iPhone 16 models are set to get a whole new button, which will be...
When To Expect New iPads Feature 1

Apple to Announce New iPads on March 26, Rumors Claim

Monday March 18, 2024 4:02 am PDT by
Apple is widely expected to release new iPad Air and OLED iPad Pro models in the next few weeks. According to new rumors coming out of Asia, the company will announce its new iPads on Tuesday, March 26. Chinese leaker Instant Digital on Weibo this morning 日发布%23">claimed that the date will see some sort of announcement from Apple related to new iPads, but stopped short of calling it an...
airpods 3 orange

Two New AirPods 4 Models Expected to Launch in September or October

Sunday March 17, 2024 7:56 am PDT by
Apple suppliers will begin production of two new fourth-generation AirPods models in May, according to Bloomberg's Mark Gurman. Based on this production timeframe, he expects the headphones to be released in September or October. Gurman expects both fourth-generation AirPods models to feature a new design with better fit, improved sound quality, and an updated charging case with a USB-C...
iphone se 4 modified flag edges

iPhone SE 4 Expected to Depreciate Heavily

Tuesday March 12, 2024 9:04 am PDT by
Resale value trends suggest the iPhone SE 4 may not hold its value as well as Apple's flagship models, according to SellCell. According to the report, Apple's iPhone SE models have historically depreciated much more rapidly than the company's more premium offerings. The third-generation iPhone SE, which launched in March 2022, experienced a significant drop in resale value, losing 42.6%...
iOS 17 Passkey With Apple ACCOUNT Feature

'Apple ID' Expected to Change to 'Apple Account' Starting With iOS 18

Sunday March 17, 2024 7:13 am PDT by
MacRumors was first to report that Apple was planning to rebrand "Apple ID" to "Apple Account" across its software platforms and websites like iCloud.com as early as this year, and now Bloomberg's Mark Gurman has corroborated this change. A mockup of the new Apple Account branding In his Power On newsletter today, Gurman said the new "Apple Account" branding will start to be used later this...
General iOS 17 Feature Orange Purple

iOS 17.4.1 Update for iPhone is Imminent

Monday March 18, 2024 5:27 am PDT by
iOS 17.4.1 and iPadOS 17.4.1 should be released within the next few days, with a build number of 21E235, according to a source with a proven track record. MacRumors previously reported that Apple was internally testing iOS 17.4.1. As a minor update for the iPhone, it will likely address software bugs and/or security vulnerabilities. It is unclear if the update will include any other changes. ...