Amid the ongoing legal battle between Epic Games and Apple, Spotify's Chief Legal Officer and Head of Global Affairs Horacio Gutierrez wrote an anti-App Store piece in the Wall Street Journal summarizing Spotify's problems with Apple.
Gutierrez saysthat Spotify is one of the few companies to insist that Apple is a "ruthless bully that uses its dominance to smother competitors." Spotify has long been irked by Apple's App Store fees, as the 15 to 30 percent cut Apple takes from subscriptions means Spotify must either raise its prices for those who sign up through the App Store or refuse to offer subscriptions on iOS at all, which Spotify has opted to do. Apple's "antisteering" rules prevent Spotify from directing iPhone and iPad customers to the Spotify website to sign up, which Spotify says gives Apple Music some big advantages.
The company has also argued that Spotify pays 15% of its revenue on just 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 off iPhone and iPad users' path to subscriptions than to take the 30% fee on new subscriptions.
“App Store rules restrict innovation”
Gutierrez points to the many regulatory challenges Apple faces in Europe and the United States. The European Commission found in April that Apple violated EU competition law with Apple Music. That same month, the Senate Antitrust Subcommittee questioned Apple's App Store policies. Spotify, Tile, and others participated in the latter hearing, saying that if the App Store rules aren't changed, Apple will take over the internet, "limiting innovation, stifling small businesses, and virtually eliminating customer choice."
Spotify wants to be treated fairly
Spotify is asking the US to accelerate its regulatory initiatives against Apple with "urgent, narrowly tailored updates" to antitrust law to "end such egregious abuses." Gutierrez further explains that Spotify is not asking for special treatment but rather wants "fair treatment." He summarizes his post by stating that Apple's "ability to strangle its competitors is unprecedented." He writes that those who are able to "do something" have now "seen behind Apple's facade" and are now acting on behalf of "innovators and consumers around the world." (Photo by Unsplash / Sara Kurfeß)
