09 July 2019
Spotify has been extremely successful, reaching 100 million paid subscribers. However, it has had its set of setbacks in the recent past. One of them being the ongoing issue with Apple. Apparently, Apple charges a 30% commission for Spotify to be on its App Store. This means that Spotify has to charge premium subscribers more than its standard $9.99. Spotify claims this as unjust and an attempt for Apple to promote its own music app called Apple Music.
It seems like the European Commission (EU) has taken Spotify’s complaint very seriously as it will now further investigate into the dispute. Thanks to a report by the Financial Times, we know that the EU will investigate Apple regarding this issue. According to Spotify’s CEO, Daniel EK, Apple’s policy gives it an “unfair advantage”. Spotify does have the option of not collecting payments via Apple’s App Store. However, doing this will subject Spotify to a series of technical and experience limiting factors.
Spotify has appealed to the EU since it has the authority to change business practices and even levy fines of up to 10% for unlawful practices. Over the past few years, Apple has found itself in quite a few disputes but has always managed to stay afloat. Do you think it can do it again? Let us know what you think in the comments section below!