Spotify and Apple lock horns over music subscription

Apple and digital music service app Spotify are heading for a showdown, as the latter accused the tech giant of running afoul of antitrust laws and that it is using its App Store approval process as a weapon to harm its competitors for Apple Music.

Spotify’s general counsel recently lambasted Apple for refusing to approve Spotify’s latest app update because the app does not make use of Apple’s proprietary billing system. According to Apple rules, every app on the App Store that relies upon subscription pricing has to utilise Apple’s billing system. App Store is Apple’s playground and they get to determine the rules, and ahead of the recently held WWDC, the company announced that it was adjusting the revenue split on long-term subscriptions from 70/30 to 85/15.

Apple, as a response has fired back a letter to Spotify saying, “We find it troubling that you are asking for exemptions to the rules we apply to all developers,” Sewell said, “and are publicly resorting to rumors and half-truths about our service.” The letter goes on to point out that creating and maintaining the App Store is “no small feat” and that the company’s digital marketplace is not meant for developers to take advantage of without playing by the rules.

“Our investment in the App Store is not trivial. However, if a customer chooses to sign up for a digital product outside of the App Store the developer does not pay us anything and their content will still work on Apple devices. To imply that Spotify should not have to pay to avail itself of the benefits of Apple’s hard work, just as every other developer does, would give you a tremendous advantage over other developers. It’s simply unfair and unreasonable,” the letter reads.

Spotify has been using Apple’s billing system for years, but passed on Apple’s fee to customers by charging $13 a month instead of the $10 a month the service sells for outside Apple’s store. Last year, after Apple launched its own music service, Spotify encouraged users to pay for the service outside of iTunes.

Last fall, Spotify started offering new subscribers the chance to get three months of the service for $0.99 if they signed up via Spotify’s own site. This month, Spotify revived the campaign, but claimed that Apple threatened to remove the app from its store unless it stopped telling iPhone users about the promotion.