Apple Cites Irrelevant Spotify Subscription Stats In New Antitrust Defense

In response to Spotify's antitrust complaint, Apple claims that Spotify has greatly exaggerated how much money is being taken by the App Store. "Apple says that it's currently taking a 15 percent cut of subscription fees for around 680,000 Spotify subscribers, representing 0.5 percent of Spotify's total subscribers, and that Spotify is not paying a 30 percent cut on anything," reports The Verge, citing Der Spiegel. From the report: The takeaway message is supposed to be that Spotify is blowing its complaint way out of proportion, but those small numbers don't tell the full story -- they basically don't matter, because Spotify gave up on App Store subscriptions years ago. Spotify only offered subscriptions through the App Store between 2014 and 2016. That means subscription numbers have had years to dwindle. In 2016, Apple also reduced the cut it takes from subscriptions after they've been active for more than a year, bringing it down from 30 percent to 15 percent. That means Apple is only taking the lower number from Spotify, because Spotify hasn't signed up any new subscribers in years. The complaint that Spotify filed in March with the EU's antitrust arm says that Apple requires it to "pay a 30 percent tax on purchases" made through iOS. Even if Spotify isn't currently paying 30 percent because it stopped offering subscriptions through iOS in order to avoid the fee, that 30 percent tax is still true.

Re:

[DracusMage]

What's hard about offering a link to sign up outside the app is that it's prohibited by Apple, and will get your app removed. Which circles right back around to why they are complaining.

Re:This seems very relevant

[Luthair]

The problem is that Apple's anti-competitive practices prevent Spotify (and others) from even mentioning that is possible to subscribe through their applications unless Apple gets its vig. If I recall correctly there are even rules around emailing users that signed up through the applications on the idevice.

If you have access to an idevice take a look at the reviews for applications look at reviews for Comixology and other applications on itunes, notice how there a flood of one star reviews complaining about not understanding the application or no longer being able to buy anything through the application (because Amazon got fed up with Apple)

So yes, Apple's rent seeking is anti-competitive and is undoubtedly harming Spotify's (and others) ability to compete against Apple's own services.

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[Luthair]

Aside from the fact they do, the user is creating an account with the third party.

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[tlhIngan]

The problem is that Apple's anti-competitive practices prevent Spotify (and others) from even mentioning that is possible to subscribe through their applications unless Apple gets its vig. If I recall correctly there are even rules around emailing users that signed up through the applications on the idevice.

So don't offer subscriptions through the app. No one said you had to. Netflix doesn't, for example. The app just demands a log in.

If you want to use the Netflix app, you have to subscribe outside of the

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[Plumpaquatsch]

But 99% of people can figure that out even without a link. And Spotify is complaining that that 1% is keeping them from making a profit just so they can pacify their stockholders.

And if you believe that you are one of the 1%.

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[tepples]

Apple just has a store. Malls charge whatever rent they want. So do apartments.

Apple also has an operating system that locks out other stores. It's as if people living in one state were allowed to shop at only one mall chain.

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[BronsCon]

And if you like rules and policies forcing you to pay your lord and master for everything you do with a device you've already paid for, well, there's iPhone.

Two sides of the same coin, really.

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[tepples]

I am under the impression that systems that are not open damage the market in the long run.

The stats aren't irrelevant

[mveloso]

Apple is showing that Spotify doesn't have standing to sue because the supposed damages are tiny.

Like £350 million sent to Europe

[gnasher719]

One of the great lies of the Brexit campaign was notorious prat and liar Boris Johnson claiming that the UK was sending 350 million pounds per week to the EU. Fact was, Britain got a rebate, still negotiated by Margaret Thatcher, which meant that while the UK _ought_ to pay 350 million before rebate, they actually paid a lot less - a clear lie by Boris Johnson. (Leaving out the other fact that the UK also received a lot of money from the EU isn't a lie, just misleading).

Same here; Spotify makes claims ho

Apple is helping Spotify make its point

[Tony Isaac]

Why doesn't Spotify offer subscriptions through the AppStore any more? Well of course, because Apple's take is so big, it didn't make sense for Spotify to allow subscriptions through the store, even though they wanted to for the convenience of customers.

And.."just" 15%??? That's still a HUGE take! Other marketplaces in the real world, such as eBay and Amazon, charge more like 5%.