Spotify Slams Apple’s “Outrageous” 27% Commission
Music streaming giant Spotify has launched a scathing critique against Apple for imposing new transaction fees of up to 27% in the US, labelling it as “outrageous” and accusing the tech giant of prioritizing profits over fair competition. Apple recently announced that app developers could sell products outside its store, but only if they continued to pay a commission.
Spotify contends that Apple’s move is a direct violation of a US court ruling aimed at fostering greater competition. The court found Apple guilty of restricting app developers from informing users about alternative payment methods. In response to this ruling, Apple introduced new rules allowing users to subscribe to services without using its payment system, but developers would face a commission of up to 27%.
Expressing its discontent, Spotify declared that Apple’s actions go against the court’s intent to encourage a more competitive environment. The streaming service has a history of clashing with Apple over fees and market dominance, having previously accused Apple of an “insane” level of control over the internet.
Spotify is now urging the British government to prevent the imposition of similar fees in the UK. In a statement, the company asserted that the UK’s Digital Markets, Competition, and Consumer Bill should curtail Apple’s practices, creating a more competitive and innovative tech industry for consumers and businesses.
The UK government’s Digital Markets Bill, introduced last year to address the dominance of tech giants, could potentially empower authorities to intervene in app store transactions for the sake of maintaining open and competitive digital markets. However, a government spokesperson refrained from commenting on specific cases, emphasizing that it is not their place to do so.
