Spotify on March 13 sent a complaint to the European Commission to address the Apple that the company takes 30% of all purchases of competitors ‘ apps in the App Store. According to the service rules of the App Store limit the choice of users and interfere with the services to develop.
In response, Apple said that “Spotify is wrapping their financial motives false rhetoric.”
“After many years of using the App Store for a significant development of its business, Spotify is now seeking to retain all the benefits of the App Store ecosystem, including the substantial income they receive from App Store, without making any contribution to the ecosystem. At the same time, Spotify is spreading the music love users, paying relatively low royalties to authors: artists, musicians and poets, reaching even to attract music makers to the court,” the company said.
Apple also noted that 84% apps in the App Store don’t pay Apple for the download or use of these services people. In particular, the company does not charge a Commission free apps; those who get income only through advertising; taxi services and food delivery.
While Apple takes a Commission for digital goods and services that are purchased inside the app when using the payment system of the company.
“As pointed out by Spotify, this share of income is 30% in the first year annual subscription, but they didn’t mention that it is reduced to 15% in subsequent years,” notes Apple.
According to Apple, the majority of clients use their Spotify app advertising models which brings the income of the App Store. In addition, some customers Spotify comes through affiliate programs with mobile providers that no money in the App Store, but requires Spotify to transfer fee for distribution network operators and retailers.
Photo: nuchylee / Photobank Fotogenica.
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