Spotify filed a complaint with the European Commission (EC) over Apple’s practices accusing the tech giant of using biased strategy to subdue its competitor. EC is the regulatory body liable for keeping competition fair and nondiscriminatory.
Spotify said that the iPhone maker is using their App Store rules to harm consumers by leaving them no choice but to follow the standards set up by the App Store. Spotify said that Apple is limiting other music streaming apps in Apple products to benefit Apple Music.
Spotify’s CEO Daniel Ek said in his blog post that his goal for Spotify is and has always been to reimagine the audio experience by giving consumers the best creativity and innovation they have to offer. “For that to be a reality, it is my firm belief that companies like our must operate in an ecosystem in which fair competition is not only encouraged but guaranteed”, Ek assured.
The guidelines released by Apple was continuously changing. At first, Spotify thought that it is just right for them to use guidelines for security, safety, privacy, and quality purposes, but as Apple change the rules by their terms, it also created disadvantages for rivals like Spotify.
The 30 percent cut that Apple takes from the subscriptions that are made via App Store can’t match the price of Apple Music. For Spotify, this strategy is unfair to any other app that Apple is competing with.
With the complaint filed by Spotify against Apple, the war between the two companies evolved into a war of word.
On Friday, March 15, Apple finally breaks its silence and hits back against Spotify’s ‘tax’ allegations. Apple said that “Spotify wants all the benefits of a free app without being free.”
“What Spotify is demanding is something very different. After using the App Store for years to dramatically grow their business, Spotify seeks to keep all the benefits of the App Store ecosystem — including the substantial revenue that they draw from the App Store’s customers — without making any contributions to that marketplace. At the same time, they distribute the music you love while making ever-smaller contributions to the artists, musicians and songwriters who create it — even going so far as to take these creators to court,” Apple said.