Apple Faces Further Charges in EU Antitrust Case Triggered by Spotify

[RFolk]

I really don't like Spotify . Their payment towards the artists is just not fair. But on this one , they are right. Apple is enforcing every app to go for subscription. A stupid keyboard app is 3 to 5$ per month. That is Apple policy.
And please stop with the "build your own iphone and platform" Apple has opened a public APP Store in which everyone can fairly compete , well , is it ? is it fair ? Netflix, HBO, Prime ?
And how about the fact that for years Apple's own apps were in the store without possibility of reviewing ? Is that fair ?

Also, stop with the "if you don't like it, leave ". On the years where subscription on apps where not mandatory , everything was fine , now, not so much .. they change the rules as they see fit, knowing that you are too invested into the product to quit.
Apple needs to be regulated , no question about that.

 

[Sophisticatednut]

I find it funny that when businesses complain about high prices, investigations and changes typically happen. Now when consumers complain about high prices like gas and/or $1000 phones, nothing happens. Gas prices are very suspect when the same store will advertise a different price depending on what side of town you are on.....

That’s not true. We have that happening all the time. In EU difrent places have difrent laws when it comes to usurious price
Or as it’s called. Ockerpriser or Wucherpreis. In german and swedish. As a crime.

high price demanded for any product, service, loan, etc., where the seller uses his dominant position to push the price up to unreasonable levels

We have that for credit card fees a maximum price banks are allowed to take on a transaction. And we have legal cases for some individual situations as well.

 

[darngooddesign]

If we are to investigate Apple Music and Spotify, can we make sharing links compatible with each other?

Can be hard to share to that friend who has a different service than you.

Unless the total link structure is identical, I doubt it would work.

If someone uses Spotify, but has the Apple Music app on their phone, how would the link know which app to open?

 

[darngooddesign]

A stupid keyboard app is 3 to 5$ per month. That is Apple policy.

Is it really Apple policy to force subscriptions?

 

[insoft.uk]

ironically the EU has the same setup for trading, those that are not members are treated unfair by the EU own wall garden

 

[jameslmoser]

Of course they are free to make their own OS.

I'm so sick of people making this stupid comment/suggestion. Do you want 50 different mobile operating systems out there that only have a couple apps you might want to use? Change between multiple phones for different apps/services???

 

[PlayUltimate]

For a small developer, the 30% cut is probably is worth it in terms of handling all of the details (payment, hosting, financial issues, support et al) . For a large company the 30% can be a large number and may not seem worthwhile. And lawsuits may be a cheaper way to lower those costs. I figure Apple will decide on a new way to make their $$ and people will still complain.

 

[webkit]

I really don't like Spotify . Their payment towards the artists is just not fair. But on this one , they are right. Apple is enforcing every app to go for subscription.

How is Apple "enforcing every app to go for subscription"?

As far as Spotify is concerned, there's really no reason for someone to subscribe through the iOS app for $12.99 when you can subscribe online for $9.99.

 

[4jasontv]

Spotify should be putting its energy into making a better product to justify the higher price.

 

[Ethosik]

The point is that many Apple Music subscribers might consider Spotify if its cost was the same as apple musics and if they could subscribe more easily. Apple did indeed create more friction or cost for those who want to use services from other suppliers. This can be acceptable in the Wild West (the us) but in Europe it’s a no no, and apple won’t be allowed to continue this behaviour. Or they could leave the eu market, which I suspect they won’t be doing as it’s the biggest common market area in the world.

How is that reasonable? Compare Disney+ with Netflix subscription. Or compare Photoshop with Affinity Photo costs.

 

[4jasontv]

For a small developer, the 30% cut is probably is worth it in terms of handling all of the details (payment, hosting, financial issues, support et al) . For a large company the 30% can be a large number and may not seem worthwhile. And lawsuits may be a cheaper way to lower those costs. I figure Apple will decide on a new way to make their $$ and people will still complain.

Just because the total amount associated with 30% increases as sales increase doesn't make the platform less worthwhile. If anything it makes them more profitable.

Look at the way some businesses pay flat rates for their affiliate programs. Apple could do that instead. It doesn't matter how much anyone pays for an app the developer gets $0.99.

Or they could be like tiktok and say we have $Y amount of money to pay developers and the more customers who buy your app the greater a percent of $Y will go to you. However, if the number of developers increases they will eat into everyone else's percent of $Y.

There are other payout programs that are far less beneficial for developers.

 

[4jasontv]

Unless the total link structure is identical, I doubt it would work.

If someone uses Spotify, but has the Apple Music app on their phone, how would the link know which app to open?

It could work if every recording of every song had a unique identifier that could be used to share links. And then you just let the user pick their default music, podcast, audiobook, and video streaming apps. If their default doesn't have it let the app store present a pop-up that tells you if any other app on your device has access to it, as well as the service your friend used to share it (to encourage developers to participate). Similar to how searching for shows on tvOS works.

 

[swingerofbirch]

I thought you as a developer setts the price then apple adds their 30% cut on top.

I honestly tought you entered the price you wanted before costs was added on top

I mean, that could be. But I have never heard it described that way.

Math is hard (for some people).

I'm actually really bad at practical, in-your-head math, so algebra actually does serve me well, as it did in this case. I wouldn't be able to think it out without writing it out.

 

[mikethemartian]

I find it funny that when businesses complain about high prices, investigations and changes typically happen. Now when consumers complain about high prices like gas and/or $1000 phones, nothing happens. Gas prices are very suspect when the same store will advertise a different price depending on what side of town you are on.....

What side of the street you are on also effects the prices because during rush hour people are less likely to go to a station on the other side of the street than one on their own side.

 

[4jasontv]

What side of the street you are on also effects the prices because during rush hour people are less likely to go to a station on the other side of the street than one on their own side.

Wouldn't other factors also impact it? I assumed some differences exist based on who supplies the fuel, the price when the station was last refilled, and if they have other services that can generate revenue.

I have a full-service gas station near me. They come out and pump for you, clean all your windows and lights, and offer to check your fluids and tire pressure. They also ask if you want to buy a soda or a few other items. I suspect that the cost to offer this isn't insignificant, but locals here use them religiously because their staff often catches things early. And when it's -10 or 95 out... it's can be really nice to stay in the car.

 

[_Spinn_]

I hate Spotify for buying up so many podcasts and locking them in their app.

 

[BornAgainMac]

I just googled the differences between Apple Music and Spotify and they are basically the same thing. Apple even supports listening to your music using only a web browser and it looks like the native Music app. I don't think I will ever switch to Spotify no matter what the outcome is with this EU case.

 

[dk001]

Sounds like Apple isn't playing fair. I wonder what their shareholders think?

Shareholders don't really care as long as it does not affect the profits.

 

[Coconut Bean]

It is proposed that this gives Apple an "unfair advantage," since Spotify is unable to fairly compete with Apple Music's standard $9.99 per month price within the ‌‌App Store‌‌. If Spotify chooses not to collect payments via the ‌‌App Store‌‌, Apple purportedly "applies a series of technical and experience-limiting restrictions" on the company.

----

Spotify was required to provide financial records as part of this complaint and those records proved that Spotify was simply lying about it's competition with Apple. Less than 1% of Spotify's iOS subscribers were paying through the App Store AND those subscriptions were subject to the 15% commission.

Wasn't it a long time ago they removed the possibility to subscribe in-app? Just checked and you can't do it anymore.

 

[WiseAJ]

Hasn't Spotify been able to utilize Siri/HomePod/Apple Watch for years but chosen not to? How can they blame Apple for that? It seems like they are the ones shooting themselves in the foot here.

 

[vipergts2207]

Since Spotify has it own hardware "Car Thing" (I think is what it's called). Do they have to open it up to Apple Music. It seems the argument can and should be made both ways. So Spotify would have to spend time energy and resources to open up that platform so that other streaming music services can compete on it.

What’s the market share of Spotify’s “Car Thing?” Apple’s share of the mobile app distribution market? When you answer those two questions, I believe you’ll find the difference.

 

[Mitochris]

what would happen if Apple charges for every download of the app? in a way, hosting the app on their service costs more and they can still charge if the customer wants to pay via Apple. Using Mastercard or visa has a % charge, so this could be applied. The 15/30% is quite steep, i’d say, and by charging for every download Spotify would think twice if they want to change as they offer a free service.

 

[nrose101]

Good. Long overdue.

Apple is doing nothing wrong other than paying the artists

 

[TonnyM]

I wonder if people from EC ever done shopping in a supermarket like Tesco. Tesco is both a shopping platform and product maker, they make cheaper products to compete against other brands that are on their shelves. Also they take a cut from every products they sell. EC failed in court against Apple regarding tax case, they proved nothing but their political agenda against US company.

 

[MrDerby01]

Every bit of this is long over due! Happy the EU has what it takes to call it like it is to protect their consumers. Wish the US would pursue with a stronger stance as well. Korea did an awesome job as well. The more the better!