Spotify Only Paid 0.5% on App Store Commissions to Apple for Premium Subscriptions

Several months ago, and with the help Anghami and Deezer, Spotify formally lodged an antitrust complaint against Apple in the European Union.

The Swedish music streaming company its rival taking a 30% “fee” on the App Store.  This, claimed top executives, stifles creativity and innovation while Apple readily promotes its own music streaming service.

Siding with Spotify, a Deezer spokesperson person wrote,

Companies should be able to compete through innovation, content, and customer focus.  Right now, that’s not the case.  iOS and Apple users who love music streaming are disenfranchised, with higher fees and less realistic options as a result.”

Elie Habib, Anghami’s Co-Founder, added,

I think the entire music streaming industry stands behind Spotify in this battle – because it’s blatantly anti-competitive.

The Cupertino tech company quickly fired back, stating Apple has fered to work with Spotify.  Yet, the Swedish company’s CEO, Daniel Ek, hasn’t wanted to.

That didn’t stop the European Union from launching its own investigation into Apple, however.  The Department Justice a similar investigation.

Now, the Cupertino tech company has responded.

Spotify wants to have its cake, and eat it, too.

As part its rebuttal earlier this year, Apple said 84% all developers on the App Store don’t pay a dime.  The company also doesn’t directly compete with Spotify.

Taking a swipe at its rival’s increasingly bitter fight against songwriters, the Cupertino tech company wrote,

We share Spotify’s love music and their vision sharing it with the world.  Where we differ is how you achieve that goal.

Underneath the rhetoric, Spotify’s aim is to make more money f others’ work.  And it’s not just the App Store that they’re trying to squeeze — it’s also artists, musicians, and songwriters.

According to documents seen by German newspaper Der Spiegel, Apple argues Spotify has operated on “misleading numbers.”

The Cupertino tech company, for example, had only collected the 30% commission when its rival allowed subscriptions through its iOS app.  During that time, Spotify only signed up 680,000 customers.  Since 2016, however, the Swedish company changed that model, forcing iOS users to subscribe to Premium through its own website.

In short, Spotify only pays the App Store 15% after the first year a subscription for new customers.  In fact, now that Spotify has 100 million users, the App Store commission has only applied to 0.5% its worldwide subscribers.

Basically, Spotify hasn’t paid Apple a dime for iOS subscribers in the past three years.  This led an unnamed top music executive to allegedly tell MBW, “Spotify just wants to pay nothing.”

 


Featured image by aisletwentytwo (CC by 2.0).