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Spotify Filed a Complaint Against Apple

As per the sources, Spotify has put in an official complaint against Apple. There is to be a formal antitrust investigation on Apple by the EU. Spotify is accusing Apple of being unfair and limiting consumer choice to favor Apple Music over Spotify, or other music apps.

EU surveyed other rivals and customers after receiving the complaint before they decided to launch the investigation.

On of the concerns Spotify’s CEO, Daniel Ek, voiced against Apple is the tax they put on Spotify’s sales. Apple apparently took a 30 percent cut from the subscriptions that people make with Spotify through the Apple Store the first year and now are taking 15 percent. Ek writes in a blog post from March, “If we pay this tax, it would force us to artificially inflate the price of our Premium membership well above the price of Apple Music.” He goes on to explain that if they don’t pay it, there will be consequences of technical issues and restrictions that will affect their customer’s experience. Spotify also claims that Apple only taxes music app competitors with Apple Music but no other apps like Uber for example.

Apple responds to Spotify’s remarks with, “Spotify wouldn’t be the business they are today without the App Store ecosystem.” They go on to explain, “Apple connects Spotify to our users. We provide the platform by which users download and update their app. We share critical software development tools to support Spotify’s app building. And we built a secure payment system — no small undertaking — which allows users to have faith in in-app transactions. Spotify is asking to keep all those benefits while also retaining 100 percent of the revenue.”

EU could fine Apple up to 10 percent of its global revenue if they were found to have been acting unlawfully. But it will be years until this investigation is resolved.