Apple’s response to Spotify’s complaint, says it helped Spotify to become business it is today
By SK Kapoor
- Apple responded to Spotify’s European Antitrust claims
- Apple to work with Spotify on Siri ties
Spotify sued Apple for anti-competitive practices and complained to European Union Antitrust Agency that Apple’s 30% cut of revenue was a tax on competitors.
Apple Inc. fired back at Spotify‘s Complaint telling that all the Music streaming companies aims at availing all the benefits of its app store without contributing to the marketplace.
According to a statement on Friday, Apple said that the App Store contributed to Spotify becoming the business it is today, generating over a billion dollars of revenue per quarter.
Apple clarified the Spotify’s charges by saying that it doesn’t charge anything for free apps and only takes 30% from paid subscriptions, which is reduced to 15% for subscriptions more than one year.
Apple said that its developer tools allows Spotify to build its iPhone and iPad applications and said that the revenue sharing is done through App Store Billing System , that is in exchange for connecting a third party’s services to its services.
Moreover, clearing all the vague claims by Spotify, Apple said,” The majority of customers use their free , ad-supported product, which makes no contribution to the App-Store . Even now ,only a tiny fraction of their subscriptions fall under Apple’s revenue sharing model. Spotify is asking for that number to be ZERO.”
Apple added, “Developers ,from first time engineers to larger companies,can rest assured that everyone is playing by the same set of rules.That’s how it should be. We want more app bussinesses to thrive-including the ones that complete with some aspect of our business, because they drive us to be better”.
Apple considered Spotify’s Complaint as “Surprising” and said that Spotify is informed of its plan to integrate the music streaming services with Siri.
Apple’s sweet replies to Spotify’s complaint describes its“ ready to help” attitude towards Spotify!
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