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Apple and Spotify at Loggerheads over the Infamous ‘App Store’ Spat

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Apple’s app store might be a fun zone for users and several app developers but Spotify begs to differ, accusing the former of rejecting one of its updates and hindering the roll-out. The allegations have taken a massive form with Spotify hinting towards a possible case of stifling the competition— just to enhance the growth and reputation of ‘Apple Music’.

Apple’s version of the story is pretty different yet believable. According to Apple, Spotify was looking to advertise or promote a deal for new subscribers, via the latest update. The deal would have redirected members to Spotify’s own website— asking them to sign in for Premium services at $0.99. This, if allowed, would have violated Apple’s contravene which clearly states that users cannot be directed to any external service. Moreover, the entire scheme of billing for other applications is undertaken, via the iTunes. This is more of a subscription billing system but through the iTunes and Apple gets 30 percent of the cut.

Reports suggest that Spotify isn’t satisfied with the decision and has reproached this restriction with what looks like a lawsuit. Horacio Gutierrez, General Counsel, Spotify believes this to be a shameful move from Apple, used as a ‘weapon’ for eliminating competition. Apple wants Spotify to sell subscriptions and acquire new customers, using the iTunes App and according to Gutierrez this readily violates the competition law— as formulated by the E.U and U.S.

Stringent control over the app store is one way of regulating the music market, as presumed by Spotify. This store spat blocking Spotify’s update is actually breaking the fair competition rules, giving the ‘Apple Music’ service an extra but unfair edge. This incident actually takes up back to Apple’s anticompetitive behavior in the past which makes us believe Spotify’s claims of foul play. Gutierrez said that this is a troubling behavior on Apple’s part and has showed up mainly for diminishing the levels of competition which Spotify is capable of. Moreover, Spotify has always been pitted against the ‘Apple Music’ which reinstates the possibility of yet another anticompetitive move.

Coming to Spotify’s long-lasting association with iTunes— the company has always abided by the Apple’s policy, therefore justifying the 13-dollar fee, if purchased, via iTunes. Then again, Spotify charges $10 for a month’s service, outside the app store.  However, Spotify has started advertising its own set of features and subscriptions only after the launch of ‘Apple Music’ in 2015. Reason for the same included Spotify’s unwillingness to be tied down by any competitor platform. This is what cumulated to the 0.99$ advertisement in Spotify’s current update. This update, if approved, would have taken customers straight to the website— offering attractive deals and offers. At this point of time, it will be interesting to see whether apps like Showbox, YouTube and others join the revolution and opt for an independent billing method— other than iTunes.

Apple informed Spotify about the promotions and asked them to disable the same. Spotify complied to this over threats of an ouster from the app store. However, the company also disabled the billing scheme, via iTunes. This makes us believe that both these firms might soon be heading towards a courtroom meeting. 



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