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

Wednesday April 21, 2021 4:24 pm PDT by Juli Clover

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."

"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.

Tag: Apple Antitrust

Top Rated Comments

macsimcon

39 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

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

Shut up, Spotify! Make your own OS.

Score: 28 Votes (Like | Disagree)

nitramluap

Says the company who pays SFA to artists. The nerve.

farewelwilliams

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

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)

Read All Comments