Spotify Legal Chief: 'Apple's Ability to Strangle its Competitors is Unprecedented'

Amid the ongoing legal battle between Epic Games and Apple, Spotify's chief legal officer and head of global affairs Horacio Gutierrez penned an anti-App Store op-ed in The Wall Street Journal, where he summarizes Spotify's issues with Apple.

spotify complaint apple eu
Gutierrez says that Spotify is one of the few companies that insists Apple is a "ruthless bully that uses its dominance to hobble competitors."

Spotify has long been upset with Apple's App Store fees, as the 15 to 30 percent cut that Apple takes from subscriptions means that Spotify has to either raise its prices for those who sign up via the ‌App Store‌ or decline to offer subscriptions on iOS at all, which is what Spotify has opted for.

Apple's "antisteering" rules prevent Spotify from directing iPhone and iPad customers to the Spotify website to sign up, which Spotify argues gives Apple Music some major advantages.

The company has also argued that Spotify pays 15% of its revenue on only 0.5% of its subscriptions. But that's because Apple's exorbitant 30% tax on new subscriptions forced us to turn off in-app purchases in 2016. It made more business sense to cut iPhone and iPad users off from a path to subscriptions than to absorb the 30% cut for new ones.

Gutierrez points out the many regulatory issues that Apple is facing in Europe and the United States. The European Commission in April found that Apple breached EU competition law with ‌Apple Music‌, and in April, the Senate Judiciary Antitrust Subcommittee questioned Apple's App Store policies. Spotify, Tile, and others attended the latter hearing and said that if Apple's ‌App Store‌ rules aren't changed, Apple will take over the internet, "limiting innovation, squashing small businesses, and all but eliminating customer choice."

Spotify is asking the U.S. to speed up its regulatory initiatives against Apple with "urgent, narrowly tailored updates" to antitrust law to "end such egregious abuses."

Gutierrez says that Spotify isn't asking for special treatment, but wants "fair treatment," and he sums up his piece by stating that Apple's "ability to strangle its competitors is unprecedented." He says that those in a position "to do something" have now "seen past Apple's facade" and are now acting on the behalf of "innovators and consumers around the world."

Tag: Spotify

Popular Stories

iPhone SE 4 Vertical Camera Feature

iPhone SE 4 Production Will Reportedly Begin Ramping Up in October

Tuesday July 23, 2024 2:00 pm PDT by
Following nearly two years of rumors about a fourth-generation iPhone SE, The Information today reported that Apple suppliers are finally planning to begin ramping up mass production of the device in October of this year. If accurate, that timeframe would mean that the next iPhone SE would not be announced alongside the iPhone 16 series in September, as expected. Instead, the report...
iPhone 17 Plus Feature

iPhone 17 Lineup Specs Detail Display Upgrade and New High-End Model

Monday July 22, 2024 4:33 am PDT by
Key details about the overall specifications of the iPhone 17 lineup have been shared by the leaker known as "Ice Universe," clarifying several important aspects of next year's devices. Reports in recent months have converged in agreement that Apple will discontinue the "Plus" iPhone model in 2025 while introducing an all-new iPhone 17 "Slim" model as an even more high-end option sitting...
Generic iPhone 17 Feature With Full Width Dynamic Island

Kuo: Ultra-Thin iPhone 17 to Feature A19 Chip, Single Rear Camera, Semi-Titanium Frame, and More

Wednesday July 24, 2024 9:06 am PDT by
Apple supply chain analyst Ming-Chi Kuo today shared alleged specifications for a new ultra-thin iPhone 17 model rumored to launch next year. Kuo expects the device to be equipped with a 6.6-inch display with a current-size Dynamic Island, a standard A19 chip rather than an A19 Pro chip, a single rear camera, and an Apple-designed 5G chip. He also expects the device to have a...
iPhone 16 Pro Sizes Feature

iPhone 16 Series Is Less Than Two Months Away: Everything We Know

Thursday July 25, 2024 5:43 am PDT by
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
icloud private relay outage

iCloud Private Relay Experiencing Outage

Thursday July 25, 2024 3:18 pm PDT by
Apple’s iCloud Private Relay service is down for some users, according to Apple’s System Status page. Apple says that the iCloud Private Relay service may be slow or unavailable. The outage started at 2:34 p.m. Eastern Time, but it does not appear to be affecting all iCloud users. Some impacted users are unable to browse the web without turning iCloud Private Relay off, while others are...
iPhone 17 Plus Feature Purple

iPhone 17 Rumored to Feature Mechanical Aperture

Tuesday July 23, 2024 9:32 am PDT by
Apple is planning to release at least one iPhone 17 model next year with mechanical aperture, according to a report published today by The Information. The mechanical system would allow users to adjust the size of the iPhone 17's aperture, which refers to the opening of the camera lens through which light enters. All existing iPhone camera lenses have fixed apertures, but some Android...

Top Rated Comments

alex00100 Avatar
42 months ago
I can agree that apple has the right to its cut on payments done through App Store, but apple not allowing Spotify to direct people to its website seems shady
Score: 62 Votes (Like | Disagree)
omenatarhuri Avatar
42 months ago
These are rather problematic, not just Music, but also the other categories where Apple directly competes with others in the App Store, like Fitness and Video Streaming.

It's a difficult position to compete from if you have to give 30% revenue to your competitor to begin with.
Score: 62 Votes (Like | Disagree)
Macintosh IIvx Avatar
42 months ago
This is the same guy who enthusiastically spearheaded Microsoft's monopolistic software patent extortion scheme against open source software. And now he is worried about monopolist worms? He was the worm in Microsoft with their extortion scheme against open source. Why should anyone pay attention to what he says?
Score: 49 Votes (Like | Disagree)
icanhazmac Avatar
42 months ago

I can agree that apple has the right to its cut on payments done through App Store, but apple not allowing Spotify to direct people to its website seems shady
Again, should Best Buy allow free items to exist on their shelves, advertised by them, traffic created by them, etc. with a label on the item that says pay for activation at www.websitex.com? ('http://www.websitex.com?')

Even if its not free, if the item has a price tag of $19.99 but a sticker on it says "or pay for me at www.websitex.com (http://www.websitex.com) and pay only $14.99" no retailer on the planet would allow that.
Score: 49 Votes (Like | Disagree)
nickawhite Avatar
42 months ago
So the company with 158 million subscribers is being "hobbled" by the company with 72 million subscribers? ?
Score: 41 Votes (Like | Disagree)
djcerla Avatar
42 months ago
They should thank Apple and the App Store every morning before the coffee.
Score: 39 Votes (Like | Disagree)