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Home / Business / Apple Fights Back Against Spotify’s App Store ‘Tax’ Complaints

Apple Fights Back Against Spotify’s App Store ‘Tax’ Complaints



Apple (AAPL) has launched a vigorous defense of its App Store business model in response to Spotify (SPOT) filing an antitrust complaint against it in Europe.




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The iPhone manufacturer released a lengthy rebuttal to Spotify's claims of anti-competitive behavior on its website at the end of Thursday. Apple said the audio streaming service "wants all the benefits of a free app without being free".

Spotify filed its antitrust complaint against Apple with the European Commission, the European Union monitoring body, on Wednesday. He claims that Apple unfairly limits competitors to their Apple Music service through the fees charged by their App Store and through restrictions on third-party app developers.

Spotify, based in Stockholm, said Apple's App Store rates amounted to a tax on its business and users. The App Store takes a 30% reduction in subscriptions sold through its platform. After the first year, the commission drops to 15% when the subscriptions are renewed through the App Store.

The App Store also restricts third-party app developers from communicating alternative payment methods to their subscribers.

Apple's App Store For the success of Spotify

Apple says that the App Store has helped make Spotify a success and is now trying to change the rules. He said Spotify "holds his financial motivations in misleading rhetoric."

"After using the App Store for years to grow its business, Spotify seeks to maintain all the benefits of the App Store ecosystem, including the significant revenue it draws from its customers. App Store – without making any contribution to that market, "Apple said.

Apple said it worked with Spotify to bring its service to more devices and users.

"We have approved and distributed almost 200 app updates for Spotify, with over 300 million copies downloaded of the Spotify app," Apple said. "The only time we requested the adjustments is when Spotify tried to circumvent the same rules followed by any other app."

The Cupertino, California company added, "Spotify would not be the business they are today without the App Store ecosystem, but they are now taking advantage of their scale to avoid helping maintain that ecosystem for the next generation of app entrepreneurs. We think it's wrong. "

Apple shares rose 1.3% to 186.12 on the stock market today. Spotify shares rose 1.3% to 141.91.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories about personal technologies and semiconductor companies.

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