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Spotify Says Apple Won't Approve New Version Of Its App Because It Doesn't Want Competition For Apple Music (recode.net)
According to a report on Recode, Apple has rejected an update to Spotify's iOS app, and that this has caused a "grave harm to Spotify and its customers." The Swedish-based music company competes with Apple's Music streaming app and service. In a letter to Apple's top lawyer, Spotify says that Apple turned down a version of the app citing "business model rules" and demanded that Spotify uses Apple's billing system if it wants to acquire new customers and sell subscriptions. From the report:The letter, sent by Spotify general counsel Horacio Gutierrez to Apple general counsel Bruce Sewell on May 26, suggests that Spotify intends to use the standoff as ammunition in its fight over Apple's rules governing subscription services that use its App store. "This latest episode raises serious concerns under both U.S. and EU competition law," Gutierrez wrote. "It continues a troubling pattern of behavior by Apple to exclude and diminish the competitiveness of Spotify on iOS and as a rival to Apple Music, particularly when seen against the backdrop of Apple's previous anticompetitive conduct aimed at Spotify ... we cannot stand by as Apple uses the App Store approval process as a weapon to harm competitors."
Is this really a surprise? If it weren't for federal laws requiring competitors be allowed to participate in Canada, we'd only have Bell (Canada), Rogers and Shaw for providing ANY Internet access and consequently, crazy high prices for Internet services abusing their monopoly. Fortunately our laws require those companies with the physical infrastructure to provide at wholesale prices so resell to end customers. Food for thought..
"Imagination is more important than knowledge" - Einstein
Apple was already charging more per month for a Spotify subscription than what you'd pay by going through Spotify. You could subscribe through Spotify for $9.99, but if you subscribed through iTunes I think it was $12.99.
Apple is just making sure they get a hefty cut of what Spotify is doing, while adding no value.
This whole thing is a bit weird on both sides.
1) When Apple added in-app payments (IAP) to the App Store, they came with a set of draconian rules (e.g. devs must use Apple's IAP system and pay Apple their 30% cut; devs can't advertise other ways to pay outside the store, etc.). No one liked it, but devs adjusted by doing things like raising the price to cover Apple's 30% cut from people who paid via IAP which is what Spotify did.
2) This arrangement continues for several years.
3) Spotify decides it no longer likes playing by the rules they've been following for years, so they submit an update that includes ads for an off-store way of paying for a subscription at a lower price.
4) Apple rejects the update since it's in violation of the rules.
5) Spotify decides to take its ball and leave, so they not only pull the advertising, they also pull the ability for iOS users to pay at all from the app.
6) Apple apparently decides it wants to punish Spotify, so they reject that update, even though there's so far no indication of any form of rules breaking.
All of which is to say, this seems childish on both sides. Apple's rules are soon-to-be relaxed a bit (e.g. 15% cut for subscriptions that last longer than a year), but they're still draconian, and Spotify seems to be breaking the rules intentionally, then acting outraged in as loud a way as possible simply for the purpose of drumming up some PR.
As a portion of the market in question,nnamely, mobile music listeners willing to pay monthly sub, Apple is huge and likely in violation of anti trust laws.
The courts will fugure this out. Thankfully for consumers, the courts have a better consumer protection history than your typical slashdot pro-business anti-consumer libertarian.
Seems like a simple fix,
From TFA:
Spotify stopped advertising the promotion. But it also turned off its App Store billing option, which has led to the current dispute.
Seems they did that, actually.
they could possibly include a "button" that directs you to their website to "manage your account" if they wanted to and Apple still wouldn't get shit.
That's specifically forbidden by Apple, actually, for the very reason you mention: Apple [...] wouldn't get shit.
APK quotes people (including myself) without context and should not be trusted. Just thought you should know.