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Apple Fires Back at Spotify in Escalating App Store Feud



Apple Inc. fired back at Spotify Technology SA's antitrust complaint, saying the music streaming giant wants all the benefits of its app store without contributing to the marketplace.

company that generates over a billion dollars of revenue per quarter, according to a statement on Friday

Spotify, which offers both free and paid services, complained to the European Union's powerful antitrust agency that Apple's 30 percent cut of revenue was tax on competitors

The feud comes as Apple expands at launching new services, moving into new business areas that are competitive with third-parties on its platform. Its 201

4 acquisition of Beats came as the iPhone maker into music streaming and on March 25, the Cupertino, California-based company plans to launch a new video streaming and magazine service.

In its response to Spotify's complaints, Apple said it doesn't charge for distributing free apps and only takes the 30 percent from paid subscriptions on its platform. It also says that the rate drops to 15 percent for subscriptions of more than a year.

"The majority of customers use their free, ad-supported product, which makes no contribution to the App Store," Apple said. "Even now, only a tiny fraction of their subscriptions fall under Apple's revenue-sharing model. Spotify is asking for number to be zero. ”

Apple said its revenue share is in exchange for connecting third-party services to its users, using the App Store billing system, and its developer tools that allow Spotify to build its iPhone and iPad applications.

"Developers, from first-time engineers to larger companies, can rest assured that everyone is playing by the same set of rules. That's how it should be. We want more app businesses to thrive – including the ones that compete with some aspect of our business, because they drive us to better, "Apple said.

The Stockholm-based music streaming service also said Apple" routinely blocks "some or its product upgrades, such as integration with the Siri digital assistant and the Apple Watch. Apple described Spotify's claims as "surprising," pointing out that the Swedish company has an Apple Watch app that's ranked as the top app in the wearable App Store's music section.

service with Siri and that Apple is "ready to help" as appropriate.


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