Did Apple Overcharge Spotify Over In-App Subscription Purchases?

By John Heerdink LinkedIn Disclaimer
Spotify has filed a complaint against Apple (AAPL) to the European Commission claiming that the technology giant is charging a 30 percent fee on developers for its in-app subscription purchases made through App store. The audio streaming platform expressed how difficult it is to maintain competitive pricing as compared to Apple Music over these charges, as per reports.
Spotify CEO, Daniel Ek stated in a blog in March “If we pay this tax, it would force us to artificially inflate the price of our Premium membership well above the price of Apple Music. And to keep our price competitive for our customers, that isn’t something we can do.”
However, per reports, Apple has shot holes in the allegations and clarified that the majority of the Apps pay nothing to Apple and “the rates drop from 30% to 15% after the first year of an annual subscription.” The European Commission is expected to set an inquiry into the allegation after surveying customers, rivals and others related to the matter, as reported in the Financial Times.




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Apple is reportedly set to face an EU investigation over Spotify’s competition complaint

Spotify’s complaint alleges Apple Music gives the U.S. tech giant an “unfair advantage” over rivals… www.cnbc.com
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