Apple strikes back at Spotify

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"Apple appears to be refusing to take Spotify's recently claims lying down, instead choosing to publish a scathing response letter to the music streaming service which recently accused Apple of anti-competitive practices in the E.U. Business Insider reports that in a recent statement, Apple harshly responded to Spotify's antitrust claims, laying out the steps that Apple had taken to help Spotify in the development of its app and how Spotify benefited from the App Store".

Spotify claims Apple imposes a discriminatory tax and rejects Spotify's submission for app enhancements simultaneously depriving users of improved app features. Apple requires that Spotify and other digital services pay a 30% tax on purchases made through Apple's payment system, including upgrading from our Free to our Premium service.

It appears that Apple wants to keep its arguments focused on the store as a whole rather than directly engaging with points about its own apps.

Apple is not staying silent in response to Spotify's antitrust complaint with the European Commission.

It said that it has approved 200 app updates, and "the only time we have requested adjustments is when Spotify has tried to sidestep the same rules that every app follows". We provide the platform by which users download and update their app.

Spotify, which launched a year after the 2007 launch of the iPhone, said on Wednesday the tech giant unfairly limits rivals to its own Apple Music streaming service. As for the Apple Watch, it said the claim was "especially surprising" because the Spotify Watch app is now the number one app in the Watch Music category. No, it never blocked Spotify support from Siri or HomePod, it claims, stating it reached out to Spotify about AirPlay 2 support "on several occasions". When Spotify submitted their Apple Watch app in September 2018, we reviewed and approved it with the same process and speed with which we would any other app. We want more app businesses to thrive - including the ones that compete with some aspect of our business, because they drive us to be better.

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Apple even discloses that the majority of Spotify customers use its ad-supported plan which does not make any contribution to the App Store.

Apple Music accepted the new CRB rates, while Spotify, Amazon, Pandora and Google appealed against them. Apple also notes that, while Spotify has discussed the 30 percent cut that Apple takes, this drops to 15 percent in the second year for subscriptions. "In fact, the Spotify Watch app is now the No. 1 app in the Watch Music category".

Apple's statement begins with, "We share Spotify's love of music and their vision of sharing it with the world", before distancing itself. The company also points out that Spotify's Watch app is now the number one app in the Watch Music category.

A significant portion of Spotify's customers come through partnerships with mobile carriers. "They're leveraging their scale to avoid contributing to maintaining that ecosystem for the next generation of app entrepreneurs", Apple writes.

"We think that's wrong", it said. Today the company has shot back, basically saying that Spotify just lives to make money off others work.

Apple's approach has always been to grow the pie.

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