Looks like the music streaming services are butting heads and getting in each others’ ways again. Guys, c’mon now.
Spotify has openly reported that Apple has rejected a new version of its iPhone app, and this is all in an effort to block the competition from its own Apple Music service. In a letter sent by Spotify to Apple’s highest-tiered lawyer, Spotify says that Apple is “causing grave harm to Spotify and its customers,” which is true considering they would harm not only the company’s success but also all of the customers and beneficiaries of the company- that’s a lot of people. The monopoly, Apple, cited “business model rules.” Real mature. They also then demanded enforced that Spotify must use Apple’s billing system if “Spotify wants to use the app to acquire new customers and sell subscriptions.”
For Apple, there is no such limitation and requirement to subscribe to use its own iTunes billing service; however, third parties may not use an alternative payment system within its apps. This is apparently able to keep everything in check. Apple charges its monthly fee of up to 30% for those who do use its billing system, but it also discourages third parties from promoting alternate subscription opportunities.
As a result, Spotify has long used Apple’s billing system but passed Apple’s fees onto the customers, charging those who subscribe through iTunes $13 USD a month instead of $10 USD a month for those who subscribe outside of their services. In addition to all of this, Spotify recently renewed its promotional opportunities of offering new subscribers the chance to get three months of the service for $0.99 USD. What did the big fruit do this time to them? Well, it threatened to remove Spotify from its App Store unless the company stopped advertising this promotion to iPhone users. Spotify then decided to stop advertising the promotion as a whole and turned off its App Store billing option. And so now, here we are, in this conflict.
Senator Elizabeth Warren criticized Apple, Amazon and Google for “anticompetitive practices,” saying, “Apple has long used its control of iOS to squash competition in music,” after Spotify sent copies of its letter to the Congressional staff to see for themselves the injustice of the music giant competition.
What will of this mean for Spotify? For Apple? Also, be sure to find out more on Apple’s recent venture and business negotiations to buy TIDAL from Jay Z here.