Spotify Criticizes Apple's 27% Commission, Seeks UK Action
Spotify is firing back at Apple's recent move to impose steep transaction fees, calling it “outrageous.” Apple declared that app developers can sell products elsewhere, but they must still pay a hefty commission, reaching up to 27%. Spotify accuses Apple of going to extreme lengths to safeguard its profits and is urging the UK government to prevent similar fees.
This change in Apple's policy comes after a legal battle with Epic Games, where the court sided with Apple on several issues but criticized the restriction on app developers informing users about alternative payment methods.
Apple, known for charging a 30% fee for its payment system (15% for smaller developers and exempting 85% of them), is now allowing subscriptions outside its system in the US but imposing a commission of up to 27%.
In response, Apple argues that the commission aligns with the court's ruling and emphasizes the benefits developers gain, such as platform integrity, marketing, and a secure environment for users.
Spotify strongly condemns Apple's actions, stating that they contradict the US court's intent to promote competition and accusing Apple of protecting its app store monopoly at any cost.
Notably, this isn't the first time Spotify has criticized Apple's fees, previously deeming them “insane” in October 2023. Now, Spotify is calling on the UK government to intervene and prevent Apple from implementing similar fees.
The UK's Digital Markets, Competition, and Consumer Bill, aimed at curbing tech giants' power, is seen by Spotify as a solution. The bill empowers authorities to take targeted measures for app store transactions, promoting open and competitive digital markets.
In response, a government spokesperson refrained from commenting on specific cases, emphasizing that the bill aims to address concerns about tech giants' dominance in the market. The future of this dispute may unfold after the bill is passed.
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