In March, Spotify filed a complaint against Apple with the Ecu Fee over the so-called “Apple tax” and claims of restrictive regulations in regards to the App Retailer. Within the time since, Apple has answered with the launch of a website that takes goal on the anti-trust, anti-competitive claims towards it, and maximum lately, a deep dive into how the process of app approvals paintings, by means of a CNBC profile. Now, Apple has answered to the EC criticism with its personal submitting which says Spotify is simplest paying this “Apple tax” on lower than one p.c of its paid subscribers.
Particularly, Apple’s submitting says that Spotify simplest will pay a 15% “app tax” (income percentage) on simply zero.five% of its 100 million top rate subscribers, or round 680,000 shoppers. This income percentage simplest affects the ones shoppers Spotify obtained right through the 2014-2016 period of time who signed up for the subscription thru an in-app acquire. In a while, Spotify switched off the choice to enroll within the app.
That is distinction to the declare made through Spotify CEO Daniel Ek at the corporate’s weblog in March, the place he wrote that “Apple calls for that Spotify and different virtual services and products pay a 30% tax on purchases made thru Apple’s fee device.”
As well as, MBW stories, bringing up an unnamed supply, that Spotify will pay even lower than the usual 15% for the ones shoppers who signed up thru in-app acquire because of label reductions. The supply advised the hole that Spotify simply desires to “pay not anything.”
On the other hand, Spotify’s declare is going past the Apple tax.
It additionally stated that Apple used its App Retailer energy to penalize the competitor in different ways — like restricting Spotify’s talent to keep up a correspondence with shoppers, and even ship emails to its iOS customers. Spotify stated Apple additionally blocked its iOS upgrades — one thing it brought to light years ago. Apple, in the meantime, has at all times maintained it has handled Spotify like every other app developer.
Apple’s responses to those latter issues had been additionally sneaked into the new CNBC piece the place a “longtime Apple veteran” who used to be simplest known as “Invoice,” made positive to inform the scoop website online that he had “referred to as Spotify when an replace used to be rejected” — e.g., as a result of Spotify were emailing shoppers and asking them to pay the song streamer at once, out of doors the App Retailer.
Along with Spotify’s EU criticism, Apple is going through different assaults towards its App Retailer within the U.S. courts.
The U.S. Supreme Court in May ruled against Apple to permit an App Retailer antitrust case to continue.
And in June, two app developers proceeded to sue Apple over its App Retailer practices, making identical claims about Apple’s 30% fee on app gross sales and its requirement to worth apps in tiers finishing in 99 cents.
Apple had previous responded to Spotify’s complaint in length on its own website. The corporate, partly, stated that:
After the use of the App Retailer for years to dramatically develop their industry, Spotify seeks to stay the entire advantages of the App Retailer ecosystem — together with the considerable income that they draw from the App Retailer’s shoppers — with out making any contributions to that market. On the identical time, they distribute the song you’re keen on whilst making ever-smaller contributions to the artists, musicians and songwriters who create it — even going as far as to take those creators to courtroom.
Apple’s way has at all times been to develop the pie. By means of growing new marketplaces, we will be able to create extra alternatives no longer only for our industry, however for artists, creators, marketers and each and every “loopy one” with a large thought. That’s in our DNA, it’s the precise style to develop the following large app concepts and, in the long run, it’s higher for purchasers.