Spotify fires back, points out Apple is swinging for low blows

Spotify's email

Spotify's email

So, Apple Music launched and competitor Spotify was not quite pleased. With all the reach that Cupertino has with its popular iPhone, combined with exclusive deals with artists, and a 3-month free trial giving users access to all its premium features – the Sweden-based streamer definitely has good reason to be concerned.

But a popularity contest isn't Spotify's only problem in this situation. See, Apple has barred the company from placing a direct link for its Premium subscription within the Spotify app. In order for users to sign up to the paid service, they have to buy an item from the App Store. However, Apple takes a 30% cut from its store sales, which effectively increases the price of Spotify Premium from $10 to $13.

Of course, that's an issue – Apple's own Music will cost $10 per month for an individual, and will also include a $15 family plan that covers 6 accounts. Both sound much more lucrative than a $13 subscription to Spotify's Premium for just 1 account. The Swedish streamer wishes to let its users know that there is a cheaper way of doing things and has now started shooting out emails, which inform subscribers of this fact, and provide directions on how to un-subscribe from the App Store version of Spotify Premium, and subscribe for $9.99 directly through Spotify's own website.

Now that's a foul swing from Apple for sure. The company would usually only charge the 30% fee for businesses where it does not provide its own service. In this case, it is effectively using its position of power to inflate a major competitor's prices. The whole ordeal, combined with reports that Apple has been pressuring major labels to pull their songs from Spotify's free playlists, has led to authorities looking into the matter on grounds of anticompetitive business practices.

source: The Verge via Engadget

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33 Comments

1. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

Too bad Spotify doesn't have blank space and style

4. TyrionLannister unregistered

You can keep a few songs in your local storage.

9. AnTuTu

Posts: 1595; Member since: Oct 14, 2012

That's probably the cheapest move till date from Apple. So glad I am not a fan of such a cheap company. Shame on you Tim Cook and team.

12. E.N.

Posts: 2610; Member since: Jan 25, 2009

Doesn't Google also take a 20-30% cut from apps in the Play Store?

15. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Nope. Payment mode: either PayPal or credit card. Google payment has not been use at any stage. For Google the use of Google payment service is optional not mandatory.

16. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Apple recent behavior is worse than Microsoft monopolies days in the 90's Despicable!

22. jroc74

Posts: 6023; Member since: Dec 30, 2010

Its so bad I cant even say its worse. it might be exactly like MS of the 90's.

17. E.N.

Posts: 2610; Member since: Jan 25, 2009

You can pay with credit card on the App Store too. Google's Developer Support Page says: "For applications and in-app products that you sell on Google Play, the transaction fee is equivalent to 30% of the price. You receive 70% of the payment. The remaining 30% goes to the distribution partner and operating fees."

18. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Have you downloaded Spotify into your Android phone? If not please do. I am using Spoify for my Note 3 now. Payment is not thru Play Store but Paypal or credit card. Unlike Apple, Google does not ban app that use third parties payment services within an app. Why are you even arguing? Don't you own any Android devices?

21. E.N.

Posts: 2610; Member since: Jan 25, 2009

You're confusing a conversation with "arguing." I don't own an Android device, which is why I'm asking.

29. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

You're confusing a "conversation" with you thinking you'd made a killing point.

25. waddup121 unregistered

Cool things!

2. QuadFace

Posts: 179; Member since: Aug 19, 2013

Apple is available in more countries than Spotify. I can blame Spotify for being so lazy to reach me, I think is time to wake up spoti!

3. tech2

Posts: 3487; Member since: Oct 26, 2012

Did you even read the article ? Anyway, the problem isn't that Apple clearly is misusing its position of power to inflate a competitor's price but how easily they'll get away with this.... In short, Apple now makes money from Apple Music AND Spotify, perfect ! Apple is a monopoly in making and monopolies are never a good idea.

7. QuadFace

Posts: 179; Member since: Aug 19, 2013

I hate Spotify for not being in my country, what ever Apple is doing will not affect me, but availability in more countries is very important.

31. engineer-1701d unregistered

what country are u in

23. threed61

Posts: 259; Member since: May 27, 2011

How is Apple, with 18% market share, a monopoly. Anyone who deals with them knows they charge for everything. You should be more irritated with Spotify for waiting until now to tell customers about a cheaper option.

30. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

Even being a monopoly is not inherently wrong. What is wrong is monopolizing. Using one's position in a given market to effect another. In this case, Apple can possibly be found to be monopolizing.

5. Derekjeter

Posts: 1455; Member since: Oct 27, 2011

Oh Apple what would we do with out your greediness. Lol

6. Tarox

Posts: 114; Member since: Feb 17, 2015

this apple company is just full of s**t...

8. Nicko97

Posts: 49; Member since: May 25, 2015

When you feel threatened you use everything you have got face it spotify you have a major competitor now just think only 15 million pay 55 million don't thats disgusting i would pull my music from spotify if it was being abused sorry but i think you need to pay for songs just like you have to pay for groceries because it keeps peoples jobs alive Apple music is great $10 a month offers cache storage of songs and i know that my dollars are going toward the artist

10. Macready

Posts: 1811; Member since: Dec 08, 2014

Get your head out of your hypocritical *ss. Are you paying Phonearena for their work on this website when consuming it? In a way, yes, through being subjected to advertising, in principle the same way free Spotify accounts work.

11. Macready

Posts: 1811; Member since: Dec 08, 2014

PS: and no, a good deal of your dollars will go on that ever growing pile in Cupertino for Tim Cook to sit on and to use for anti competitive business practices.

32. engineer-1701d unregistered

what the f are u talking about nick0 kids born in 97 should not be involved with dirty business companies like apple,stealing from the artist remember apple was not gonna pay artists for the first 3 month trial but after t swift outed them nationally they changed over night, then a app thats 10 then bumped up 30% to make it 13 just to push there own app is antitrust and thats why doj is looking into them for forcing music labels to bend to them and other bad things,

13. monoke

Posts: 1145; Member since: Mar 14, 2015

Ef apple. These cheating bastards don't offer anything different from it's competitors but have to resort to low ball tactics to steal other customers. Sucks for iphone users that prefer spotify.

14. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

Porn Death Grind and Blackened Thrash, my genre of choice....Apple doesn't even know what that is....and yes, it's on SPOTIFY!

19. hafini_27

Posts: 945; Member since: Oct 31, 2013

What a dick move.

20. phonearenarocks

Posts: 606; Member since: Mar 26, 2015

Planning to start an Anti-Apple Association. How many would join it?

24. gersont1000

Posts: 473; Member since: Mar 13, 2012

And yet another reason why I can't stand Apple the company and will not buy any products from them whatsoever. I think Android is way better because of the freedom it allows and because you can do so much more with it, but iPhones have come so far to at least not suck in my opinion. However, I will still not buy an iPhone because I don't want to support such a d!ck company. I hope they get sued and broken up.

26. mrochester

Posts: 947; Member since: Aug 17, 2014

I think you're confusing Apple for Google. If there was any company I'd describe as a dick, it'd be Google. Apple are saints in comparison.

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