Saturday July 20, 2019
Home Lead Story Spotify Payin...

Spotify Paying Tax on Less Than 1% of Paid Subscribers: Apple

Apple has slammed Spotify for wanting “all the benefits of a free app without being free”

0
//
Spotify Music still leads outside of the US, tallying 75 million subscribers as part of its first earnings report in May.
Spotify Music still leads outside of the US, tallying 75 million subscribers as part of its first earnings report in May. Pixabay

Swedish music streaming service Spotify is not paying 30 per cent ‘Apple tax’ on its subscriptions via App Store as claimed but even less than 1 per cent of paid subscribers, Apple has said.

In a fresh filing to Spotify’s complaint to European Commission (EU), Apple said the music streaming service only pays 15 per cent revenue share on just 0.5 per cent of its 100 million premium subscribers, reports Music Business Worldwide (MBW) and German site Der Spiegel.

According to Apple, “Spotify hasn’t paid any additional commission on a single subscriber obtained via the App Store for the past three years”.

In March, Spotify filed an anti-trust complaint against Apple with the European Commission.

The tug of war between Spotify and Apple has intensified, with the Swedish music streaming service calling Apple a “monopolist”.

“Every monopolist will suggest they have done nothing wrong and will argue that they have the best interests of competitors and consumers at heart,” said Spotify which entered the India market in February.

Spotify, Radio, News
The unannounced feature is first reaching Spotify users in the US where the news podcasts would be provided by The Wall Street Journal. Pixbay

“This is evident in Apple’s belief that Spotify’s users on iOS are Apple customers and not Spotify customers, which goes to the very heart of the issue with Apple,” it added.

Apple hit back at Spotify for its anti-trust complaint with the EU.

“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.

Also Read: ‘Pride Protests Against Company’s Code of Conduct’, Google Warns its Employees

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

Apple has slammed Spotify for wanting “all the benefits of a free app without being free”.

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

Next Story

Apple Users are Replacing iPhones with Samsung: Report

People who chose Samsung repeatedly were in bigger numbers

0
Apple, smartphone
Customers walk past an Apple logo inside of an Apple store at Grand Central Station in New York, Aug. 1, 2018. VOA

Less and less Apple users are sticking with iPhones when it comes to replacement and are switching to Android phones, especially Samsung, a new report by BankMyCell has said.

The iPhone trade-in site has been collecting data on the new device people have during the valuation and trade-in of their old iPhone. It essentially lets users sell their used phone and upgrade to a new one.

BankMyCell found that 18.1 per cent of iPhone users were trading in their device for a Samsung device in June, the highest level since it’s been in the study, according to a CNET report on Thursday.

samsung foldable phone
FILE – The Samsung Galaxy Fold phone is shown on a screen at Samsung Electronics Co. Ltd.’s Unpacked event in San Francisco, Feb. 20, 2019. VOA

The site collected data from over 38,000 people trading in their phones since October through 2019 to track Apple brand loyalty during the upgrade cycle.

People who chose Samsung repeatedly were in bigger numbers.

Also Read: Oakland Becomes Second City to Ban Facial Recognition Technology

Just 7.7 per cent of Galaxy S9 users switched over to an iPhone and 92.3 per cent remained on the Android operating system (OS). In comparison, 26 per cent of people trading in their iPhone X are moving onto another brand, the report added. (IANS)