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Did Apple Overcharge Spotify Over In-App Subscription Purchases?

By John F. Heerdink, Jr.
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.

Dow 30 component Apple (AAPL) has revolutionized personal technology with the introduction of the Macintosh in 1984. Today Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to “leaving the world better than they found it.” To Learn more about Apple (AAPL) and track its ongoing progress at Vista Partners Apple (AAPL), Coverage Page. Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives. Stay Informed! Stay Competitive! Sign Up to receive FREE email updates here!


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…
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