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Tech Giant Apple Hits Back at Spotify For Antitrust Complaint: Report

The Cupertino, California-headquartered tech giant also alleged that Spotify was also trying to squeeze the artists, musicians and songwriters -- not just the App Store

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Apple, smartphone
Customers walk past an Apple logo inside of an Apple store at Grand Central Station in New York, Aug. 1, 2018. VOA

Taking exception to Spotify’s complaint with the European Union (EU) alleging that the iOS App Store rules are unfair, Apple has slammed the Swedish music streaming giant for wanting “all the benefits of a free app without being free”.

“A full 84 per cent of the apps in the App Store pay nothing to Apple when you download or use the app. That’s not discrimination, as Spotify claims,” Apple said in a statement.

In its complaint with the EU, Spotify said that Apple requires it and other digital services pay a 30 per cent tax on purchases made through Apple’s payment system, including upgrading from a free to premium subscription.

According to Spotify, if it pays this tax, it would force it to artificially inflate the price of its premium membership well above the price of Apple Music.

“And to keep our price competitive for our customers, that isn’t something we can do,” Daniel Ek, CEO of Spotify, wrote in a blog post this week.

Apple, Campus, China
A customer is entering the Apple store in Fairfax, Virginia. VOA

Apple said its revenue share is 30 per cent only for the first year of an annual subscription. It drops to 15 per cent in the years after.

“The only contribution that Apple requires is for digital goods and services that are purchased inside the app using our secure in-app purchase system,” Apple said, adding that building a secure payment system which allows users to have faith in in-app transactions was no small undertaking.

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The Cupertino, California-headquartered tech giant also alleged that Spotify was also trying to squeeze the artists, musicians and songwriters — not just the App Store.

“Just this week, Spotify sued music creators after a decision by the US Copyright Royalty Board required Spotify to increase its royalty payments. This isn’t just wrong, it represents a real, meaningful and damaging step backwards for the music industry,” Apple added in the statement. (IANS)

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Access 300 Magazines on Apple News+ For $9.99 a Month

The company also announced Apple Card designed for iPhones

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Apple, smartphone
Customers walk past an Apple logo inside of an Apple store at Grand Central Station in New York, Aug. 1, 2018. VOA

Apple on Monday launched an all-new service called Apple News+ where users can read latest issues of 300 magazines in categories like entertainment, politics, lifestyle, health and travel etc.

Newspapers like the Los Angeles Times, The Wall Street Journal and Canada’s The Star will also arrive on Apple News+.

Apple News+ will be available for $9.99 per month across Apple devices, starting with the US and Canada and the first month’s subscription will be free.

“The idea is to harness the power of journalism and its cultural impact. It is a great opportunity for publishers,” Apple CEO Tim Cook told the audience at the Steve Jobs theater at its Cupertino campus.

Apple won’t allow advertisers to track you so it is private and secure, he added.

Apple, Campus, China
A customer is entering the Apple store in Fairfax, Virginia. VOA

Cook said the Apple Pay feature will cross 10 billion transactions in 2019.

The company also announced Apple Card designed for iPhones.

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The users can sign up for Apple Card and start using it via Wallet. Goldman Sach is the issuing authority for Apple Card that will be acceptable all over the world.

“Goldman Sach will not sell your data to third parties,” said the company. (IANS)