Spotify says Apple defies EU over app replace rejection

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On Wednesday, Apple advised Spotify that its app replace for customers within the EU was not allowed into regional App Retailer situations resulting from lacking components. The App Retailer assessment course of decided that Spotify didn’t settle for the phrases of the Music Streaming Companies Entitlement.

Apple requires the entitlement to be accepted by streaming companies earlier than apps can level customers towards a web site owned by the developer. This can be utilized to deal with purchases exterior of the App Retailer.

On the time, Apple advised Spotify that the streaming service had included hyperlinks to an exterior storefront that could possibly be used to purchase subscriptions. However on the similar time, Spotify hadn’t accepted the Entitlement’s phrases nor submitted a profile for the assessment itself.

Nonetheless, in response to the rejection from the App Retailer assessment course of, Spotify turns the issue right into a authorized difficulty within the EU. Particularly, a ruling by the European Fee ordering Apple to cease its anti-steering practices.

In an announcement obtained by AppleInsider on Thursday, Spotify declares “Apple has as soon as once more defied the European Fee’s resolution, rejecting our replace for making an attempt to speak with clients about our costs until we pay Apple a brand new tax.”

“Their disregard for customers and builders is matched solely by their disdain for the regulation,” mentioned a Spotify Spokesperson.

The reference to a “new tax” is in regards to the Entitlement’s guidelines.

Fairly than paying the everyday 30% App Retailer transaction price, companies agreeing to the Entitlement should pay Apple a fee of 27% on purchases made via the choice course of. This determine can drop to 12% for Small Enterprise Program contributors or the renewal of an auto-renewing subscription past its first yr.

At this level, Spotify pays little to Apple, provided that it eliminated the power to buy a subscription out of the app years in the past.

Again in 2019, it was reported that 680,000 customers of Spotify had been paying 15% of the subscription price to Apple, and none paid 30% in any respect. Since Apple’s costs for subscriptions cuts in half for the second yr and past, this meant all Spotify subscribers paying via Apple on the time had been long-time customers, and that no new subscribers had been added within the earlier yr.

The Spotify CEO retains hammering on a 30% tax when he complains in regards to the App Retailer, regardless.

In March, following the European Fee’s ruling, Apple mentioned Spotify had a 56% share of Europe’s music streaming market, and that it had paid Apple “nothing for the companies which have helped make them one of the crucial recognizable manufacturers on the earth.”

“A big a part of their success is because of the App Retailer, together with all of the instruments and know-how that Spotify makes use of to construct, replace, and share their app with Apple customers all over the world,” the assertion continued, including that Apple was “proud to play a key function supporting Spotify’s success.”