Spotify has filed a complaint with EU antitrust regulators against Apple, saying that the iPhone maker unfairly limits rivals to its own music streaming service Apple.
Spotify, which launched a year after the iPhone was launched in 2007, said on Wednesday that Apple’s control of its app store deprived consumers of choice and rival audio streaming service providers for the benefit of Apple Music, which started in 2015.
Spotify’s core complaint, filed with the European Commission on Monday, is what it says is a 30 percent fee that Apple charges content-based service providers to use the in-app purchase system. Apple (IAP).
Horacio Gutiérrez, Spotify’s general counsel, said the company was pressured to use the billing system in 2014, but was then forced to increase the monthly fee for its premium service from € 9.99 to € 12.99, just as Apple Music launched at Spotify starting price of $ 9.99.
Spotify then stopped using Apple’s IAP system, meaning that Spotify customers could only upgrade to the fee-based package indirectly, just like on a laptop.
Under the rules of the app store, Spotify said, content-based apps couldn’t include buttons or external links to pages with production information, discounts or promotions, and trouble fixing bugs. Such restrictions do not apply to Android phones, he said.
“Promotions are essential to our business. This is how we convert our free customers to premium, “Gutiérrez said.
The Siri voice recognition system would not connect iPhone users to Spotify and Apple refused to allow Spotify to launch an app on their Apple Watch, Spotify said.
Spotify declined to say what financial damage it believed it suffered.
“We are confident in the economic analysis that we have presented to the Commission that we could have done better than we have done so far,” Gutiérrez said.
Tech2 is now on WhatsApp. For all the latest science and technology buzz, subscribe to our WhatsApp services. Just go to Tech2.com/Whatsapp and hit the Subscribe button.