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Apple Says Spotify Wants 'the Benefits of a Free App Without Being Free' (engadget.com)

Apple has responded to Spotify's European Commission (EC) complaint. In a press release, the company said that Spotify "seeks to keep all the benefits of the App Store ecosystem ... without making any contributions to that marketplace." It added that the App Store has generated $120 billion for developers while offering users a secure platform, and that Spotify is seeking to side to sidestep the rules that every other app follows. From a report: "Spotify has every right to determine their own business model, but we feel an obligation to respond when Spotify wraps its financial motivations in misleading rhetoric about who we are," the company wrote. Spotify's main argument was that Apple's own music service, Apple Music, isn't subject to the same restrictions of its own app. "[A]pps should be able to compete fairly on the merits, and not based on who owns the App Store," wrote CEO Daniel Ek. "We should all be subject to the same fair set of rules and restrictions -- including Apple Music." It added that Apple had often stymied it on app updates and locked it out of Apple services, "such as Siri, HomePod and Apple Watch." Finally, it noted that Apple had blocked communication with its own customers on things like special offers. In response, Apple addressed each complaint point by point, while criticizing Spotify's treatment of musicians and artists. It said that it has approved nearly 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."

139 of 215 comments (clear)

  1. Apple music should pay the 30% fee by fred6666 · · Score: 3, Funny

    to Apple. Problem solved.

    1. Re:Apple music should pay the 30% fee by WankerWeasel · · Score: 4, Interesting

      They likely do so, for legal purposes. For example, when Facebook or Google use their own advertising platforms to advertise to their visitors, they must pay just the same as anyone else would. Sure, it basically come out of the budget in one part of the company and goes into another, but it has to be done, and all applicable state and federal taxes must be paid too. It's not completely free to them, even on their own platforms.

    2. Re: Apple music should pay the 30% fee by Anonymous Coward · · Score: 2, Insightful

      In a discussion about a financial disagreement between apple and spotify: yes.

    3. Re:Apple music should pay the 30% fee by EndlessNameless · · Score: 1

      all applicable state and federal taxes must be paid too.

      Most states exempt business-to-business transactions from sales tax. There is no federal tax on advertising services either, so there are no direct tax liabilities.

      It will shift around their profits, but the accountants and tax lawyers are there to make sure that the profits don't disappear. Or to exploit tax regulations, if the situation allows, for more profits.

      It's not completely free to them, even on their own platforms.

      It may not be technically entirely free, but it's scarcely more a rounding error on their P&L.

      --

      ---
      According to the latest ruleset, this post should be modded as Vorpal Flamebait +5.
    4. Re: Apple music should pay the 30% fee by saloomy · · Score: 1

      What? What state do you live in? Not California, where these companies are located.

    5. Re: Apple music should pay the 30% fee by Paradise+Pete · · Score: 4, Insightful

      Are we just going to pretend nothing happened in Christchurch?

      Do you do that in real life too? Just run up to people in a conversation and tell them to stop talking about what they want to talk about and start talking about what you want to talk about?

  2. The Truth: by MikeDataLink · · Score: 4, Insightful

    The TRUTH is, Apple is a dick when it comes to the handling of the app store and its walled garden iron fist controls. They could be better and should be.

    The TRUTH is, Spotify is ruining music in many ways by paying fractions of pennies in royalties. Some artists with millions of song plays have received on $80 for a year of royalties. Fix that, then stop trying to side step app store rules. They could be better and should be.

    Two companies who are both pulling bullshit are mad at the other for pulling bullshit. That's the Truth.

    --
    Mike @ The Geek Pub. Let's Make Stuff!
    1. Re:The Truth: by Nidi62 · · Score: 4, Insightful

      The TRUTH is, Spotify is ruining music in many ways by paying fractions of pennies in royalties. Some artists with millions of song plays have received on $80 for a year of royalties.

      I wonder how much their publisher received though. I bet it was a lot more than $80.

      --
      The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
    2. Re:The Truth: by fred6666 · · Score: 3, Informative

      The TRUTH is, Spotify is ruining music in many ways by paying fractions of pennies in royalties. Some artists with millions of song plays have received on $80 for a year of royalties. Fix that, then stop trying to side step app store rules. They could be better and should be.

      These artists are free NOT to be on Spotify if they think their music is worth more than that.
      I doubt Google/Deezer/Apple and other competitors are paying much more.

    3. Re:The Truth: by JourneymanMereel · · Score: 2

      It's possible to be walled garden without being iron fisted.

      The main complaint here isn't that an app needs to progress through the approval process before it's released to Apple's users. It's that Apple has a requirement that they get a 30% cut of any revenue generated through iTunes. Then they're using the app store approval process to reject any version of the app that doesn't have the ability to subscribe through iTunes. This prevents Spotify from simply saying "Go to spotify.com in order to purchase a premium membership" (or whatever they call it).

      --
      Life has many choices. Eternity has two. What's yours?
    4. Re:The Truth: by Anonymous Coward · · Score: 1

      The TRUTH is, Spotify is ruining music in many ways by paying fractions of pennies in royalties.

      I looked up how much Apple vs Spotify pays in royalties out of curiosity once. Turns out Apple does pay more per stream: $0.001 more. Not a typo, a 1/10th of penny more per stream. Now, sure, that'll add up eventually, but when it comes to under-paying artists, that's something both Spotify and Apple can agree on.

    5. Re:The Truth: by dcw3 · · Score: 2

      Please explain...

      How is music being ruined?
      Tell us which artist is getting paid $80 for their "millions of song plays"?

      And finally...Why, if you don't like it, don't you take your business elsewhere?

      --
      Just another day in Paradise
    6. Re:The Truth: by thegarbz · · Score: 4, Interesting

      You have dramatically simplified Spotify's impact on music while ignoring Apple's. The amount of money artists get have nothing to do with the sums spotify are paying for access to the music. That is the bullshit from the industry which invented bullshit.

      An *rights holder* with over a million streams would be receiving somewhere between $30000 and $84000 according to Spotify's current rate. If the artist is only getting $80 then I would really be looking at who is the middle man between Spotify and the artist.
      A reference I found to an "artist" rather than a "rights holder" puts the figure closer to $10000

      In the meantime Apple is here to help right? I mean for a million songs the "rights holders" would get a whopping $37000 from Apple which would really help those artists sleep at night.

      And while it's nice to criticise Spotify for the money equation, maybe you should look at their balance sheet. After all they will cease to exist if they keep up their trend of endlessly losing money. Is it much of a surprise with little income, and passing more than all of their profits to the record industry they are somewhat pissed at the thought of paying Apple on top of that?
       

    7. Re:The Truth: by Anonymous Coward · · Score: 1

      The truth is LABELS are ruining music in many ways by paying fractions of revenue in royalties for the invaluable service they provide these days such as ... uhm, uhh... stuff? Don't blame spotify (yet) for what is still clearly the labels faults.

      And fuck Apple's bs... Spotify were big before they ever had an app on apple. How much do Spotify pay Android makers to be on their platform?

    8. Re:The Truth: by TomGreenhaw · · Score: 1

      This.

      I wish I could give more points - the score on this should not be limited to 5.

      --
      Greed is the root of all evil.
    9. Re:The Truth: by UnknowingFool · · Score: 1

      The TRUTH is the vast majority of Apple users of Spotify pay no money to Apple. If they do pay for Spotify subscriptions they are doing through other means like Spotify directly. The 30% fee only applies if the user pays Apple through the app which amounts to a handling fee.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    10. Re:The Truth: by registrations_suck · · Score: 2

      And Spotify is free to not be on the iPhone if they think their app is worth more than the the 70% of the price they charge for it on the App Store. They can also, wait for it, INCREASE THEIR PRICE to what they DO think it is worth - and then find out if their customers agree with them.

    11. Re:The Truth: by Solandri · · Score: 5, Informative

      The TRUTH is, Spotify is ruining music in many ways by paying fractions of pennies in royalties. Some artists with millions of song plays have received on $80 for a year of royalties.

      I wonder how much their publisher received though. I bet it was a lot more than $80.

      Spotify pays $0.006 to $0.0084 per stream to the holder of music rights. That works out to $6000 to $8400 in royalty payments per million song plays. If the artist is only getting $80 for a song that's listened to millions of times in a year, their publisher is the one screwing them over. The publisher is keeping more than 99% of the royalty payments, passing on less than 1% to the artist.

      (Sanity check: Spotify averaged 1.7 billion listening hours per month in 2015. At 3.5 minutes per song, that's 29 billion song plays per month, or 350 billion song plays per year. At the above royalty rates, they'd be paying about $2-$3 billion in royalties per year. And indeed that's about how much they pay in royalties - $3.9 billion in 2018. So yes, it is in fact the record labels who are screwing the artists over, not Spotify.)

    12. Re:The Truth: by fred6666 · · Score: 1

      I agree with that, but Apple should at least be forced to allow the convenient installation of Spotify from outside their store. Just like Android does.

    13. Re:The Truth: by Paxtez · · Score: 1

      Do you have a source for that?

      The one I found cited a $0.00397 per stream rate for Spotify
      [ https://thetrichordist.com/201... ]

      Which works out to be $3,970 per million streams.

      Interestingly Apply does seem to pay almost twice as much at $0.00783 / stream.

    14. Re:The Truth: by Highdude702 · · Score: 1

      The main problem I see here is that most android users never owned an iphone, They are used to having malware installed by an app and having too remove that app later on and feel stupid. For those people there is cydia. But for the majority of people that are not nerds, so you know... The rest of the world. The app store on ios is the best thing they could get. They don't have to think twice about it being safe to install certain programs. Remember back when apple wasn't quite so iron fisted? A few apps with malware made it through. They tightened their grip and there hasn't been any issues in a long time. Try that trick on android.

    15. Re:The Truth: by registrations_suck · · Score: 1

      But why? It shouldn't be the purview of the legal system to prevent shitty UX. If a company wants to have a shitty UX, that is between it and its customers. Let the customers decide.

    16. Re:The Truth: by registrations_suck · · Score: 1

      This is a good point.

      I don't want to have to wonder, "is this a good app?" Apple does the vetting for me (supposedly) That's just FINE with me. If some company doesn't want to pony up some cash to Apple, then FUCK THEM, they don't need to be on my damned phone. Pay to play, motherfuckers!

      And guess what? Grocery stores get kickbacks from its suppliers too. They only have so much floor space. Do you think a grocery store sells anything that some vendor somewhere wants them to sell? Hell no! They pick and choose. There are winners and losers. Suppliers that DO get put in the store ALSO pay for premium placement on the shelf! Pay to play.

      Don't believe it?
      https://qz.com/807723/inside-t...

    17. Re:The Truth: by fred6666 · · Score: 1

      Because it is anti-competitive behavior and basically means that any day Apple can lock your device and choose that you will only be able to install Apple applications.

    18. Re:The Truth: by Highdude702 · · Score: 1

      I completely agree. I have my phone jailbroken so I can do as I please with it. The benefit of being a nerd. As far as grocery stores go I know all about it I've had family that have been managers, and I assumes that was common knowledge.

    19. Re: The Truth: by registrations_suck · · Score: 1

      Right. So sue if that day actually comes, instead of being something youâ(TM)ve pulled out of your ass.

  3. There are some valid arguments by kalpol · · Score: 1

    I haven't had an iPhone since the 3gs but back then you couldn't get apps that would stream music over the cell data network. The Palm Treo I had previously did it just fine, but the Iphone locked it to Itunes only. I couldn't stream music off my server unless on my local wireless network.

    --
    12:50 - press return.
  4. yeah yeah by Anonymous Coward · · Score: 1

    30% tax is .... at the very least immoral

    hopefully illegal too

    1. Re:yeah yeah by registrations_suck · · Score: 1

      It would be awesome if the government cut my tax down to only 30% of my income.

  5. Well that's self serving BS from Apple. by Anonymous Coward · · Score: 1

    For a start if it something is free on the store then they are still taxing it at 30%. Just 30% of nothing. But Spotify isn't being done like that, they're being held up behind obfuscation and obstruction in contacting their users. Which is kind of what you DON'T pay money to a thirdparty warehouse salesfront to do.

    IF the choices were taxed 30% and that paid for the storage, arranging payments and user access for the purchaser of the product through their store charging them that 30%, OR 0% tax (well LESS than 30% at least, even if not 0%) but either you asked Apple to ask your users so that you were basically paying by offering up your customers to Apple to turn into revenue, THEN spotify would be wanting their cake and the eating of it too.

    As it is, what the fuck are they paying Apple to get in the way of their customers for? Purely because Apple have a monopoly on access and are ABUSING IT.

    If Apple gets out of the way and lets "Spotify paid-for" access their customers who HAPPENED to buy via the Apple Store like any other storefront would do, but Spotify were still upset, THEN I'd say Spotify is in the wrong, or at the very least looking to get a better deal on that 30% cut Apple take, which is free market fundamentals and selfish (since the free market bases itself on a driving force of selfishness).

    As it is, Apple are wrong here and are making shit up to suit their purposes and, since the monopoly is a government granted right (copyright), the government should be called in to police abuses of that monopoly.

    1. Re:Well that's self serving BS from Apple. by Altus · · Score: 2

      In what way is Spotify being prevented from contacting its users. Has apple blocked their push notification ability?

      Spotify doesn't pay a damn thing to apple for hosting their app, they do pay for processing purchases in the app using the App Store in app purchase method.... which they could easily avoid by simply pushing the user out of the app or even taking credit card information in the app. I have made a retail app on iOS, you could put things in your cart, put in your credit card info and check out just like on a web page and apple didn't get a dime for it.... Spotify could absolutely do that. They could probably even use Apple Pay and not pay a dime to apple (I dont know how Apple Pay handles subscription style payments). What they cannot do is use the App Store in app purchase feature that auto bills the credit card associated with the Apple ID without paying a fee.

      They have options, they just don't want to use them

      --

      "In America, first you get the sugar, then you get the power, then you get the women..." -H. Simpson

    2. Re:Well that's self serving BS from Apple. by EllisDees · · Score: 2

      >which they could easily avoid by simply pushing the user out of the app or even taking credit card information in the app.

      Apple doesn't allow taking credit card info in any app that's in the app store, and you have to be very careful about how you push users to pay in any other way or you risk delisting.

      --
      -- Give me ambiguity or give me something else!
    3. Re:Well that's self serving BS from Apple. by rjstanford · · Score: 1

      If you buy something from a retailer, they don't give all of that money back to the vendor.

      In this case, you're free to buy the product (a Spotify subscription) directly from the vendor for less money if you want to. WIN! And yet people are still willing to pay more money to buy the product through a trusted retailer (Apple, Amazon, etc), for which that trusted retailer deserves to charge a premium. Win for them, too.

      Spotify is basically arguing that a 3rd party retailer should accept the same cost model of a wholesaler, while also distributing any free promo items their customers want for no money, which in any other industry would be seen as ludicrous.

      --
      You're special forces then? That's great! I just love your olympics!
  6. Editing needed by LynnwoodRooster · · Score: 5, Insightful

    "the only time we have requested adjustments is when Spotify has tried to sidestep the same rules that every app other than an Apple app follows."

    That extra, bolded part, is what Spotify is complaining about, Apple. You have terms you are hell-bent on forcing on others, but you don't have to play by those rules yourself, do you...

    --
    Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    1. Re:Editing needed by dcw3 · · Score: 1

      If you owned a shopping mall, and had your own restaurant inside that mall as well, would you charge yourself the same as you charged other restaurants? Why should Apple have to play that game?

      --
      Just another day in Paradise
    2. Re:Editing needed by thegarbz · · Score: 1

      If you owned a shopping mall you would not be able to charge rent for your shop based on how many customers visit it. You would additionally not be allowed to punish a company in your mall who decided to offer an online store by preventing customers who signed up online from walking into their store but still permitted them to walk in your own.

      If a shopping mall did that (which is the complaint filed against Apple) then they will find themselves in court.

      Except maybe not in the USA since your antitrust laws are so stacked to required a tangible financial impact on consumers and completely ignores B2B competition that they are essentially not worthy of the title antitrust laws.

    3. Re:Editing needed by registrations_suck · · Score: 1

      I imagine that Apple has a lot of API calls and OS functions that it keeps to itself too. Maybe it should be forced to publish all of that....who cares if security goes to shit.

    4. Re:Editing needed by registrations_suck · · Score: 1

      Except maybe not in the USA since your antitrust laws are so stacked to required a tangible financial impact on consumers and completely ignores B2B competition that they are essentially not worthy of the title antitrust laws.

      In the U.S., Anti-Trust law exists to protect CONSUMERS, not corporations.

      One thing I've noticed is that there seems to be a dearth of consumers demanding that Apple cut App Store developer fees or that app developers be able to spam-on-demand app users. They're also not asking for price increases on apps or services obtained through the App Store. In fact, ACTUAL BUYERS of Apple's products and services seem to be generally quite happy with them. Those that are not go buy an Android or some other device. They have plenty of options to choose from too - and almost all of them are CHEAPER. So...yeah...kinda hard to make the case that consumers are being materially hurt by Apple's policies.

  7. Re:Benefits of a in-house app without being one by Freischutz · · Score: 1

    Spotify, why Apple would want to make things easier for you?

    I suspect Netflix is next, since Apple is set to launch its competing streaming app.

    While I think Apple's 30% tax is extortionate, Apple should get a swift kick in the nuts from a judge over that, but I cannot blame Apple for wanting a cut. If you had a brick and mortar electronics store would you sell Google/Apple streaming boxes without being compensated? ... spend your resources on flogging a product for somebody else for free? If Spotify thinks any app vendor is in the business of handing out their app for free to their users without getting some form of compensation then Spotify is delusional. Apple has also no business preventing Spotify from being able to spam its users on Apple platform to its hearts content through their app if they are really dead set on annoying users off their service, but requiring Apple to handle their e-mail traffic is a bit much.

  8. off your high horses by supernova87a · · Score: 1

    As with so many matters that involve money, arguments fly around left and right that claim to be on principle, but really aren't.

    When you see ESPN and Comcast argue over showing the World Series, don't buy the argument that one of them is "trying to prevent loyal customers from being able to see their favorite game", or when your local hospital group withdraws from your employer health plan that "the other side is trying to deprive you of consumer choice".

    Each side is wanting to make a share of the money, and they're disagreeing over the price (or often the royalties share). No one is entitled to any particular provision of service in *any* of these cases. Except in regulated industries there's no law governing the "fair" share that someone has to offer, or someone has to accept. And in most cases, each side could choose to compromise what it's asking for with no damage to its model of business (not talking about $, just the principles they claim).

    Spotify wants a lower $ charge. Apple owns the platform and controls that access and $ charge. That's it.

    This is a private contract dispute and only of interest because you care about listening to music. There's no public right to have a music app be charged a certain amount that's called "fair". Spotify could charge nothing to consumers, and be charged nothing by Apple. It's their choice. It's Apple's choice.

    Don't be fooled into "principles" when there's money involved.

    1. Re:off your high horses by dcw3 · · Score: 1

      I'd mod you up if I hadn't already commented.

      --
      Just another day in Paradise
  9. Re:Benefits of a in-house app without being one by TimothyHollins · · Score: 4, Insightful

    The situation is not quite as simple as that though. Apple has a monopoly on the market for everyone that uses iPhone while a brick and mortar store would have to compete against other stores. It's more comparable to Visa and Mastercard taking a 30% cut of each sale made at every store unless it's a store owned by Visa/Mastercard.

    If Apple had a completely unlocked phone where multiple appmarketplaces could compete for customers they could charge a 90% cut for all I care. But when they lock out the competition it gets very shady. In my mind they are abusing their monopoly position just like Microsoft and Intel did in their heydays, to the detriment of us all.

  10. Re:App Store Monopoly by postbigbang · · Score: 1

    The actual logic is: Follow the money.

    Apple has a monopoly on its turf. Defending that monopoly is Apple's Job #1. Each and every characteristic must be defended. It's pretty brilliant if you think about it, and totally unfair to competition. It makes stacks of money almost unparalleled in the history of business, creating a cash pool across the planet that is the envy of many businesses.

    Not that it's fair or just or competitive.

    Various economic shocks have made the DoJ insensitive to these things. Legislation that worked great in the 1940s has no meaning here. The US courts used to be the model of justice and even consumer-side law for decades, but now it's been broadsided by the realities of modern media and distribution infrastructure.

    If the EU doesn't fall apart somehow, it might be able to lead the anti-trust fight, but tiny Spotify is not going to be the David to Apple's Goliath because Google/Android provides a sufficient straw-man competitor that Apple will argue endlessly that they do have competition. Apple's legal team is financed by one of the largest pools of cash ever amassed in the history of this planet. That's how monopolies are protected, a hundred small battles at a time.

    --
    ---- Teach Peace. It's Cheaper Than War.
  11. Re:Apple Music can't compete with Spotify by Altus · · Score: 1

    In what way is Spotify locked out of Siri? They opened up Siri to third party integrations... are they supposed to do the work for Spotify?

    If Apple Music is so terrible Spotify should have no trouble eating their lunch... all they need to do is take credit card payments directly instead of using in app purchases.

    --

    "In America, first you get the sugar, then you get the power, then you get the women..." -H. Simpson

  12. Apples poor excuses by SmaryJerry · · Score: 4, Insightful

    Any other payment service charge will be around 2% but they try to justify 30% (but hey you get to 15% eventually right?). Apple also acts like they are the ones causing the downloads... no dude you are just a large market share of phones. Not every app gets 300 million downloads, it is the quality of the app that causes that. Stop trying to take credit for other people's work.

    1. Re:Apples poor excuses by tepples · · Score: 1

      I imagine Apple set its payment service charge at 30 percent for a few reasons. One of them is that the underlying credit card and ACH payment processors charge roughly 30 cents per transaction no matter the total. This lets Apple not bleed money with a lot of 99 cent transactions.

    2. Re:Apples poor excuses by rjstanford · · Score: 1

      No other payment service will host, validate, and serve up the Spotify app (with free updates) for the millions of users who want to download it and pay no money though. That's far from an inconsequential cost.

      --
      You're special forces then? That's great! I just love your olympics!
    3. Re:Apples poor excuses by UnknowingFool · · Score: 1

      Apple is hosting the app and the updates in addition to the payment system. While you could say that payment fees shouldn’t be more than 2%, how much would you pay for a App Store to do the same?

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
  13. The problem is the app store lock in by oic0 · · Score: 2

    If Apple isn't going to allow any other apps or apps stores to be loaded except through their app store, then they shouldn't be allowed to charge any percent. If they allowed other stores and side loading, then it would be fair to charge whatever they wanted. This is basically like saying you can only buy parts and accessories for your car through the dealership.

    1. Re:The problem is the app store lock in by UnknowingFool · · Score: 1

      iOS allows side loading of your own apps and limited side loading for enterprise licenses.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
  14. iOS IS seperate from the Applications it runs. by mr_lemonade4796 · · Score: 1

    For Apple, services is the future, so the more locked in, the better monopoly they have on services, the better they will do. While Spotify is an APP, it is also a competing service to Apple Music. This is sort of like the anti-trust cases against Microsoft for 'bundling' Internet Explrorer and other 'default' apps into Windows while making it difficult to change the Defaults. Eventually, iOS will be seen like the desktop, with applications a separate layer from the OS itself. Once that future court case is done, Apple won't be able to 'special' select it's own apps to be the only apps that work.

    1. Re:iOS IS seperate from the Applications it runs. by UnknowingFool · · Score: 1

      Not quite. MS didn’t get in trouble for just bundling IE. They got in trouble for going out of their way to harm competitors. For example threatening OEMs not to install Netscape lest their licensing increase, threatening Intel not to release a Java VM that was optimized for Intel chips, etc.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
  15. they probably do pay themselves by bussdriver · · Score: 2

    1) Apple has lawyers and accountants; likely they are doing the minimum required. That said, talented people in those areas likely have creative accounting techniques for minimizing their self-payment.

    2) Apple's counterpoint is a clear win; Spotify is just being another greedy corp testing the boundaries. That said, Apple didn't address how they pay themselves so I would guess something isn't quite right... the lawyers might be preparing to remedy that if that could be disclosed in detail.

    3) They said "Apple connects Spotify to our users" which indicates they feel 100% safe in a self-created gatekeeper monopoly market in openly saying they do exactly what people don't like and going on to justify it. They are safe on this front because it is essentially the same as any retail store... just because it's on the internet people confuse freedom with what retail actually is.

    4) 30% is high if you don't understand retail. It is well within, if not LOW when you think of actual retail store markups. Apple probably puts in more effort than Amazon or Google in curation of their store and app review to legitimately justify that cost; like a actual retail store has to stock items etc. If they spend the same labor $ as a real store doing diligent maintenance and curation of their store then the 30% is worth it.

    5) If you look over Apple's details, you'll see that they have a huge volume of Apps that skip the 30% fee. So clearly they are shifting the majority of overhead costs to the big players who can afford it. They don't mention what their profits or operating costs are for their store ; perhaps somebody could find an SEC report? I would guess that it is on the high end of normal and nothing close to typical monopoly profits.

    6) Private corps need more regulations. They are not a person with human rights; that should be obvious. If you refuse to allow black people in your store, you should have major legal problems (your personal house, it's your right to be racist.) If you refuse to sell anything made by black people, you should have major legal problems. Sadly the process in resolving such issues is poor at best; it needs to be made better and GENERIC. Apple should be forced to allow FIREFOX with their browser engine on their app store and the decision should not be theirs; all that BS about wasting RAM or security on another browser engine shouldn't be possible.

    Note: I will not buy a phone I can't run firefox on.

    1. Re:they probably do pay themselves by Vrekais · · Score: 4, Insightful

      What are Spotify getting for the 30% every month though for each user, after the user finds the app and installs it. For most apps that 30% usually of a small figure like £1 or £2 is almost like a listing fee, 30 to 60 pence to have you app on the store and in the search results.

      A Spotify subscription costs £9.99 per month, and if you pay for it through the phone with your Apple Account £3 of that goes to Apple every month (for the first year). Apple aren't running any of Spotify servers, they aren't paying musicians with that money. They are offering the exact same services as the other apps get but for a monthly fee rather than a one of payment.

      I think the most reasonable compromise would be 30% of the first month.

    2. Re:they probably do pay themselves by sh00z · · Score: 2

      5) If you look over Apple's details, you'll see that they have a huge volume of Apps that skip the 30% fee. So clearly they are shifting the majority of overhead costs to the big players who can afford it. They don't mention what their profits or operating costs are for their store ; perhaps somebody could find an SEC report? I would guess that it is on the high end of normal and nothing close to typical monopoly profits.

      Can you cite one? The biggest player I can think of is Amazon, and their Kindle app complies because you can't buy a book in the app! They direct you to a browser to make the purchase, where the 30% fee isn't applied.

    3. Re:they probably do pay themselves by aaarrrgggh · · Score: 1

      And the percentage of Spotify users that maintain the free tier of service, giving nothing to Apple? Apple’s argument is essentially that it averages out, and that makes it fair for everyone.

    4. Re:they probably do pay themselves by rjstanford · · Score: 2

      Apple are basically running servers on Spotify's behalf though, handing the downloads, refreshes, and everything else for their application which has vastly more "free" downloads (that Apple still has to support with their infrastructure) than paid ones. Additionally, most Spotify memberships are paying Apple out at the 15% rate for > 12 months, which also includes ~2% card fees right off the top.

      --
      You're special forces then? That's great! I just love your olympics!
    5. Re:they probably do pay themselves by munch117 · · Score: 2

      The people on the free tier are paying customers of Apple. They've bought a device that supposedly allows third-party applications to run. Please don't claim that Apple is getting stiffed by people using their very expensive device for exactly what it's designed for.

    6. Re:they probably do pay themselves by shilly · · Score: 1

      Spotify are paying for the potential to make money from more than a billion active users. It's a revenue share each time this potential is realised. Apple put a significant amount of time and money into making the platform work and building up that 1bn+ user-base. Why should Apple let Spotify have access for free?

    7. Re:they probably do pay themselves by bussdriver · · Score: 1

      reply: huh??
      TFA states all the conditions they do not charge for. A lot of apps qualify under those conditions. It does not surprise me Amazon would find ways to game the system to avoid any costs; those are the rules and they exploit everything remotely possible... it's Amazon. Perhaps you think the rules should be based upon the size of the app's maker? I'm not defending their rules and I've not done much thought about what would work best... and what would work best would never please everybody... even if you did please everybody some greedy pricks would be bitching because they didn't get more. It's human nature. Apple's setup seems to target only certain areas which can likely sustain the costs... they could be small, but they can work within the model so they are big enough for afford it. After all, overhead costs are pushed to the customer in the pricing. FREE is obviously subsidized by others. It is difficult to police FREE and easier to just allow exploitation of rules against the intent of the rules... it always happens... to the point we have a whole profession in doing that! (lawyers.)

      Apple doesn't seem horribly out of line and certainly not within existing legal frameworks. Spottily seems to me to be making more of a PR stunt of this than expecting any progress legally. They need to buy some politicians instead.

    8. Re:they probably do pay themselves by Highdude702 · · Score: 1

      Because there are apparently people who want to make ios as shitty as android and open it up to "anyone can upload malware". Apparently people want the rope to hang their self.

  16. Apple needs Spotify more by reanjr · · Score: 2

    Apple needs apps from third parties in order to have a useful platform. Spotify benefits Apple ecosystem by gracing the App Store with their presence. No need to send remuneration to Apple at all.

    1. Re:Apple needs Spotify more by UnknowingFool · · Score: 1

      Only if servers, payment systems, and infrastructure costs nothing would you have a reasonable argument. The point you missed is that free apps cost nothing to the developer and Spotify does this currently. What Spotify wants is when their iOS users pay for their subscriptions through Apple that Apple should get no cut.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    2. Re:Apple needs Spotify more by UnknowingFool · · Score: 1

      And some other developer would release an unofficial Spotify app using public Spotify APIs. As long as the other developers don’t violate rules regarding APIs, they can’t pull the app from Apple stores.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
  17. Unfair by fluffernutter · · Score: 2

    Spotify cannot reasonably compete head to head with Apple on their app because as Microsoft has proven, there is no room for any more ecosystems. I could blame Microsoft because they should have seen the whole 'app store' thing coming, but Spotify is a new company that didn't have the fortune to get their foot in the door in time. Apple has an unfair leverage against Spotify.

    --
    Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
    1. Re:Unfair by aaarrrgggh · · Score: 1

      Apple has an unfair advantage over Spotify’s current advertising and spamming approach to get users to upgrade to a paid account. That is all.

      They can require users to set up an account on their website, and gather the data there, and manage payments there. It is just another step for users though, which will draw people away.

    2. Re:Unfair by munch117 · · Score: 1

      They can require users to set up an account on their website, and gather the data there, and manage payments there.

      Except Apple is not likely to approve an app that works like that.

  18. FairPlay DRM lock-in was the other way around by tepples · · Score: 1

    When you got your iPhone, you knew you were locked into the Apple Store, right?

    No. When the iPhone was introduced, it had no App Store. The "lock-in" was in the other direction: playing iTunes Music Store purchases required an iPhone (or an obscure model of Motorola flip phone), though the iPhone could play music acquired elsewhere. Apple added the App Store came in iOS 2, and its lock-in was and is bidirectional: adding apps to the iPhone requires the App Store, and App Store apps require an iPhone. People who bought an iPhone because of compatibility with FairPlay DRM on pre-2009 iTMS purchases ended up additionally locked into the App Store once iOS 2 came out.

    1. Re: FairPlay DRM lock-in was the other way around by saloomy · · Score: 2

      But iOS 2 isn't compatible with Spotify, not is the iPhone at the time. Once FairPlay was removed, you were free to switch, but didn't.

    2. Re:FairPlay DRM lock-in was the other way around by Mordaximus · · Score: 1

      People who bought an iPhone because of compatibility with FairPlay DRM on pre-2009 iTMS purchases ended up additionally locked into the App Store once iOS 2 came out..

      To be clear, fault for FairPlay does not reside entirely on Apple; DRM was a condition of being able to sell music electronically imposed by the labels. Between 2007 and 2009 the option to purchase non-DRMed tracks was available, and by 2009 most of the DRM had been removed entirely.

    3. Re:FairPlay DRM lock-in was the other way around by Plumpaquatsch · · Score: 1

      Funny how only Apple locks you into their more than a decade not used DRM - and all others just abandoned the support a decade ago.

      --
      Of course news about a fake are Fake News.
    4. Re: FairPlay DRM lock-in was the other way around by tepples · · Score: 1

      Users of iOS 2 bought apps for iOS 2, and those apps owned since iOS 2 (and updated since then) became the new lock-in center.

  19. Re: That isn't a part of monopoly/abuse law by saloomy · · Score: 2, Insightful

    Bullshit. You knew there was only an App Store on the iPhone. But it is not a monopoly because the iPhone is not a monopoly.

    The country you were born in, or the country of your descent precludes choice in the matter, and a government is a de facto monopoly on your rule.

    The App Store is apple's way of distributing third party apps. If you don't like it, feel free to develop on another platform. If you don't like it, feel free to buy any other phone.

    That's what precludes it from being a monopoly. Apple's success is that they have given consumers and developers what they want, and stayed in-bounds enough not to drive their users and developers away.

  20. Not all recording artists can perform live by tepples · · Score: 1

    Perhaps artists should focus on making their money on concert ticket sales and merchandising

    What steps can a recording artist take toward "making their money on concert ticket sales and merchandising" in each of the following cases?

    A. The recording artist is independent and relies on income from a day job, which rules out touring, but seeks a way to recover the costs of further production of recordings.
    B. The recording artist specializes in a musical style that is impractical to perform live, such as the second half of The Beatles' discography or several forms of electronic dance music.

    1. Re:Not all recording artists can perform live by registrations_suck · · Score: 1

      Perhaps artists should focus on making their money on concert ticket sales and merchandising

      What steps can a recording artist take toward "making their money on concert ticket sales and merchandising" in each of the following cases?

      A. The recording artist is independent and relies on income from a day job, which rules out touring, but seeks a way to recover the costs of further production of recordings.
      B. The recording artist specializes in a musical style that is impractical to perform live, such as the second half of The Beatles' discography or several forms of electronic dance music.

      Maybe such artists should transition to more commercial marketable music if...you know...they want to be commercially successful.

    2. Re: Not all recording artists can perform live by tepples · · Score: 1

      crowd fund it.

      If you have experience in this area, which Google Search keywords do you recommend to find reliable articles about running a successful crowdfunding campaign?

  21. Do you sell physical goods? by tepples · · Score: 2

    they could easily avoid [Apple's 30% cut of IAP] by simply pushing the user out of the app or even taking credit card information in the app.

    The App Store Review Guidelines ban "pushing the user out of the app" or "taking credit card information in the app" except for physical goods.

    I have made a retail app on iOS, you could put things in your cart, put in your credit card info and check out just like on a web page and apple didn't get a dime for it

    Were the "things" physical? If so, that is the material difference between your app and Spotify.

    1. Re:Do you sell physical goods? by Altus · · Score: 1

      The app I currently work on uses a web view to let a user sign up for a service... that service is required to make the app work. It opens a web view where you can enter your information and credit card and sign up for a service, not physical goods, with a monthly recurring fee.... most users wouldn't eve notice they aren't in native code when signing up.

      Now... if Spotify tried exactly the same thing as my current app and got denied while my app and others like it are approved that would be one thing but I haven't seen anything from Spotify that implies that they have ever tried that and been denied which is likely to tank their case pretty damn hard. If my company used in app purchases to manage the subscription to a service we would have to pay apple 30% as well... these are the rules and everyone plays by them.

      What Spotify would need to show is that they tried to do things that other apps are allowed to do and got denied for it, which, if true, should be trivial.. what they want is to be able to use apple's in app purchase mechanism without paying the percentage that everyone else who uses apple's in app purchase feature pays.

      --

      "In America, first you get the sugar, then you get the power, then you get the women..." -H. Simpson

    2. Re:Do you sell physical goods? by tepples · · Score: 1

      The app I currently work on uses a web view to let a user sign up for a service... that service is required to make the app work.

      Which app is that, so that others reading this can assess its conformance to the App Store Review Guidelines?

  22. An aware city's zoning board would require it by tepples · · Score: 1

    If you owned a shopping mall, and had your own restaurant inside that mall as well, would you charge yourself the same as you charged other restaurants?

    The accountants would make up some nominal amount to put down in the "rent" category in order to itemize tax-deductible expenses. And in order to keep privileges that the city's zoning board grants to the mall, a city aware of the possibility of monopoly abuse would require this rent to be within a reasonable range of what Chick-fil-A and other tenants in the food court pay.

    1. Re:An aware city's zoning board would require it by dcw3 · · Score: 1

      I'll agree that the accountants would do whatever was necessary to maximize any tax benefits, but that's no different than any other company.

      When have cities given a shit about monopolies with maybe the exception of ISPs?

      --
      Just another day in Paradise
    2. Re:An aware city's zoning board would require it by tepples · · Score: 1

      When have cities given a shit about monopolies with maybe the exception of ISPs?

      Cities care about monopolies whenever a utility seeks permission to tear up city streets.

  23. Re:Benefits of a in-house app without being one by Paradise+Pete · · Score: 1

    While I think Apple's 30% tax is extortionate

    It's 30% for the first year of a subscription, then 15%. Spotify is not paying anywhere near 30%.

  24. Dumping the label negotiation and streaming by tepples · · Score: 1

    Except in regulated industries there's no law governing the "fair" share that someone has to offer, or someone has to accept.

    Music is a regulated industry pursuant to Title 17, United States Code. In addition, the Sherman Act as amended regulates certain aspects of all industries that engage in "commerce [...] among the several states".

    Spotify wants a lower $ charge. Apple owns the platform and controls that access and $ charge.

    Specifically, Spotify alleges that Apple is "dumping" the service of negotiating with labels and operating streaming servers by providing it to users for free. (In competition law, dumping refers to pricing a good or service below cost in order to harm competitors.) If the music publishers and record labels get 70 percent, and the App Store gets 30 percent, what does that leave for the service of negotiating with labels and operating streaming servers?

  25. Nintendo Entertainment System lockout chip by tepples · · Score: 1

    This is basically like saying you can only buy parts and accessories for your car through the dealership.

    Then how have companies like Nintendo been getting away with the same behavior since 1985?

  26. Re: That isn't a part of monopoly/abuse law by Immerman · · Score: 2

    >The country you were born in, or the country of your descent precludes choice in the matter

    Nonsense, there's this thing called emigration that's available to everyone. Every day you live in your birth country instead of leaving is a fresh choice in the matter.

    --
    --- Most topics have many sides worth arguing, allow me to take one opposite you.
  27. I say: Apple wants to profit from developers by ReneR · · Score: 1

    Apple just wants to profit 30% from all the hard working developer revenue. And I do not particularly eye here Spotify, but all the small indie ones. We work so hard, day & night, weekends, rare holidays you name it, and Apple just grabs 30%. As if they do not have enough money, and we would thankful directly sell it! https://www.youtube.com/watch?...

    1. Re:I say: Apple wants to profit from developers by UnknowingFool · · Score: 1

      Okay, how much would you pay as a developer to create a worldwide App Store that handles payments from hundreds of countries as well as distributes the app and updates. Also bear in mind Apple’s App Store is used by hundreds of million of people. You could develop your own infrastructure but I don’t think it would be less than your 30% fee.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    2. Re:I say: Apple wants to profit from developers by ReneR · · Score: 1

      Not more than the usual credit card transaction fees. We use PayPal for that and pay 1.x% to 6% per transaction. and happily handle the rest of the deployment for Mac, Linux, Windows ourselves. We anyway need a web server and such. Btw. Apple is zero helpful, they randomly reject, delete, and don't offer real updates tiers, unless you create new apps or switch your users to a subscription model, ..! :-/

    3. Re:I say: Apple wants to profit from developers by ReneR · · Score: 1

      PS: let's talk numbers, if an Indy developer team makes 100.000$ they pay 30.000$ to apple. That likely is the difference of breaking even or not. And the difference of allowing new innovative creators to grow, or just the big imperial monopoly to grow even more. I rather have 1000 good and growing individual companies and just Apple, Goole and Microsoft. And it is not that Apple is doing such an amazing job on designing amazing software and hardware the last years :-/

    4. Re:I say: Apple wants to profit from developers by UnknowingFool · · Score: 1

      You can build a web server that handles hundreds of millions of users and billions of downloads for 1% fees? What magically technology is this? Or are you false equating what you can do with what Apple actually offers. You may not think Apple is worth it but you can’t say you can build something comparable for less.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    5. Re:I say: Apple wants to profit from developers by UnknowingFool · · Score: 1

      You can sideload your own apps. Also if your app is free you as developer pay no fees. Apple and Google are almost identical in their store terms.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    6. Re:I say: Apple wants to profit from developers by UnknowingFool · · Score: 1

      PS let’s talk real numbers: if a development team make $1 on an app how much more work do they have to do for $100,000? If they make zero changes to the app, they do zero more work. Apple does all the heavy lifting. If the developers want to manange their own servers, their own network, their own websites, their own payment systems how many thousands of $ would they have to spend before they make $1. And then they have to scale everything as they get more customers.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    7. Re:I say: Apple wants to profit from developers by shilly · · Score: 1

      But you want Apple to provide you with a cheaper or free way to make your app available for its hundreds of millions of users to buy, right? And those hundreds of millions of users might well buy your app, because they trust that apps on the App Store aren't going to harm their phones, steal their data, etc, right? And that's because of Apple's role. That's what your 30% pays for.

  28. Re:Benefits of a in-house app without being one by rjstanford · · Score: 2

    And that fee covers everything from credit card processing to hosting and bandwidth, which for all of the free app downloads that Spotify enjoys is a non-negligible amount of money.

    --
    You're special forces then? That's great! I just love your olympics!
  29. reflects something by Micah+NC · · Score: 1

    People want the benefits of products without paying for them.

    What exactly is there to this accusation?

  30. Re:App Store Monopoly by UnknowingFool · · Score: 1

    The major flaw in your comparison is that Windows represented over 90% of the computing market compared to Apple. When it comes to iOS market share as Android fans will tell you repeatedly that iOS (around 20%) is much less than Android (almost 80%).

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  31. Re:That isn't a part of monopoly/abuse law by registrations_suck · · Score: 1

    You can sell apps for the iPhone without paying a single fraction of a penny to Apple.

    Your customers may have issues installing the app on their phones, however.

  32. Re:Benefits of a in-house app without being one by anegg · · Score: 5, Interesting

    If Apple had a completely unlocked phone where multiple appmarketplaces could compete for customers they could charge a 90% cut for all I care. But when they lock out the competition it gets very shady. In my mind they are abusing their monopoly position just like Microsoft and Intel did in their heydays, to the detriment of us all.

    I have an Apple iPhone; I'm on my second one. Prior to my first one I had an iPod Touch. I have deliberately chosen the iPhone over all of its Android competitors because of the way that Apple has built IOS and the way that Apple administers the app store. Although I appreciate being able to freely install and run software on my home computer, I also appreciate the "walled garden" approach on my phone as I want it to work more like an appliance and less like another system that I have to administer. I don't see how this could work as effectively without Apple's "monopoly" power over their app store. If I wasn't happy with that, I could easily have chosen a platform with an alternative approach, namely Android. Apple's "monopoly" is over their product and what can run on their product. In my opinion that control is PART OF THE PRODUCT and is one of the things that causes me to choose Apple over Android.

  33. Re:Read their complaint, Altus. by UnknowingFool · · Score: 1

    Apple doesn’t charge 30% for free apps. Apple doesn’t charge 30% for subscription users to use Spotify. They do charge 30% if users pay Spotify through Apple’s store.

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  34. Re:Benefits of a in-house app without being one by Paradise+Pete · · Score: 1

    I don't know what the breakdown is, but surely there are more users of spotify's free, ad-based service than there are subscribers. Maybe by a lot. So Spotify pays 30% for some small slice of users, 15% for a somewhat larger slice, and 0% for everybody else. They're just taking a shot at getting more money. There's no downside to trying. If it doesn't work then nothing changes. They're freerolling.

  35. Re:Apple Music can't compete with Spotify by registrations_suck · · Score: 1

    I use Apple Music simply because:

    1). I don't give a shit about "discovering" music. I listen to the same shit I've been listening to since the 80s.

    2). I just want one billing source to deal with. I will gladly pay extra for that. Spotify objects to using that billing source and paying whatever fee may be involved? Well fuck them then.

    3). As an AAPL shareholder, I'd rather give money to Apple than some other company, when a reasonable opportunity to do so exists.

    If you want to "find out" about other music, go on the web and find out about it. Nothing is stopping you.

    As for Spotify...it's a service where people LISTEN to stuff. What is to stop Spotify from injecting into its audio stream ads like, "Hey, we have a special deal for you that we know you would live - click the button on the app now!" Nothing! But oh, wait, that's right! Their users don't want to be bothered listening to their stupid fucking ads. Well guess what?! They don't want to get emails or text messages with their stupid fucking ads either!

  36. Re:Read their complaint, Altus. by UnknowingFool · · Score: 1

    No payment prosessing service hosts the app and distributes it either as you don’t seem to acknowledge that processing payments isn’t the sole purpose of the Apple Store. The closest competitor to Apple App Store is Google Play which charges the exact same amount.

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  37. Re:Apple Music can't compete with Spotify by registrations_suck · · Score: 1

    Oh, and I don't give a shit about Siri integration either. I have that shit turned off.

  38. Re:Benefits of a in-house app without being one by hawguy · · Score: 1

    And that fee covers everything from credit card processing to hosting and bandwidth, which for all of the free app downloads that Spotify enjoys is a non-negligible amount of money.

    I think Spotify is more than happy to cover their own ~3% or so credit card processing fees.

    The app is around 30MB, so even at 10 cents/GB for bandwidth, that's $0.003 per download, and again, I think Spotify would be more than happy to pay that if they could host the app on their own servers.

    Apple charges developers $99/year for the app store, and developers should be able to choose whether or not they want to pay Apple for credit card fulfillment and bandwidth. Most small developers will likely still want to pay Apple, but larger developers may want to take that on themselves.

  39. Bunch of hypocrites by SuperDre · · Score: 1

    Oh god Apple is bitching about them not getting money for doing nothing.. The Apple store is just one big ripoff for developers, Apple is getting richt over the backs of other for doing hardly anything. They could easily run their store with profit when they would lower their take to 10% (no no % for subscriptions).

  40. Spotify is apple's freind without benefits? by goombah99 · · Score: 1

    no freebies, Gotta pay

    --
    Some drink at the fountain of knowledge. Others just gargle.
  41. $120B revenue? Don't care. How much profit? by sjbe · · Score: 1

    It added that the App Store has generated $120 billion for developers while offering users a secure platform, and that Spotify is seeking to side to sidestep the rules that every other app follows.

    I always laugh when they quote revenue figures instead of profit. It doesn't matter how much revenue they generated if it isn't making any profit. As a professor of mine once said, you can make a LOT of revenue selling $2 bills for $1 - you just won't be in business very long doing it. You see this all the time in entrepreneurial magazines. They'll quote how much revenue some new business is doing and leave out the fact they are losing money hand over fist.

    I don't have a dog in this fight. I don't use Spotify so I don't really care what they do. My initial impulse is that if Spotify wants to use Apple's platform then Apple gets to charge whatever they want. If Spotify doesn't like it then that isn't Apple's problem. I doubt Spotify would do Apple a solid if the roles were reversed. Trying to compete head to head with Apple on Apple's platform doesn't seem like a recipe for success.

  42. Re:Read their complaint, Altus. by Altus · · Score: 1

    I literally explained the one thing that they choose to do that causes them to pay apple... maybe you should work on your reading comprehension.

    --

    "In America, first you get the sugar, then you get the power, then you get the women..." -H. Simpson

  43. Re:Benefits of a in-house app without being one by dgatwood · · Score: 1

    And that fee covers everything from credit card processing to hosting and bandwidth, which for all of the free app downloads that Spotify enjoys is a non-negligible amount of money.

    Actually, it is a negligible amount of money. Credit card processing fees for a company that size are probably a quarter of a percent plus a flat fee of ten cents, or about thirteen cents total per month, which is a full three bucks less than what Apple takes in the first year, and a buck and a half less thereafter. Even for tiny companies with a lot of chargebacks, it won't be more than a couple of percent or so.

    There's no way in you-know-where that Spotify uses anywhere near three dollars' worth of bandwidth every month. Right now, a quick Google search for bulk bandwidth comes up with a price of $1300 for a month of 10 gigabit-per-second service. Three dollars, then, would be 23 megabit-per-second usage continuously. For Spotify to break even, they would literally have to ship a new version of their app to each user several times per minute. Heck, even if Netflix streamed 4K video content through Apple's servers, it still wouldn't use three dollars' worth of data per customer.

    No, Apple's fees are utterly extortionate, pure and simple. But they can get away with it (for now) because web apps are basically unusable on iOS, and companies that want to make apps available on their platform have no alternative but to distribute them through Apple's store. Apple's recent actions to kill the signing certificates of companies that distributed apps outside the iOS App Store only further serves to drive that point home, just in case anyone might otherwise have considered enterprise distribution as a possible alternative.

    So at least prima facie, it looks like Apple is illegally using their position running the app store to give their own products in an unrelated area (music) an unfair competitive advantage, which is a flagrant violation of antitrust laws. And I predict they will repeat these same violations with TV content soon enough.

    That said, I don't think breaking Apple up is the right solution, though I would not discount the possibility. The right fix is to compel Apple to stop violating the law and fine them a large enough sum of money that it exceeds the benefit they illegally reap from violating the law — say 15% of all App Store revenue every month until they fix the problem.

    IMO, there are only three ways Apple can avoid violating the law here:

    • Drop the no-competing-payment-systems rule for apps that compete with their own
    • Drop the no-competing-app-stores rule
    • Allow single-app distribution direct from vendors' websites similar to the way Developer ID certs work on the Mac

    The last one is the best choice, because it benefits everyone equally, allows free software to simply distribute itself directly without Apple having to pay for it (thus allowing Apple to lower their fees considerably), and doesn't create confusing chaos involving multiple app stores, but even the first one, under supervision of a federal antitrust regulator, would also be acceptable. Either way, I have no faith in Apple doing the right thing without legal action, and that makes me sad.

    And yes, I've been saying this for years now. It's sad that it took until this year for anybody in the federal government to start paying attention, but now that they are, I suspect Apple's tying agreements and other dubious behavior will receive some much-needed scrutiny in the near future.

    --

    Check out my sci-fi/humor trilogy at PatriotsBooks.

  44. Re:Benefits of a in-house app without being one by shilly · · Score: 1

    Oh, that's very generous of you on behalf of Spotify. Now, what do you propose Spotify should pay for the access Apple provides to 1bn+ active users who all enjoy a consistent experience with Spotify's app due to the iOS platform and for Apple's provision of the ability for each of those users to instantly pay Spotify money?

  45. Re:Benefits of a in-house app without being one by hawguy · · Score: 1

    Oh, you mean the 1B customers that bought a phone so they can run apps on it?

    But I say let the consumers decide how much that consistent experience is worth -- let them pay Spotify direct, or pay 30% more to use Apple's system to pay through the app.

  46. Re:Read their complaint, Altus. by UnknowingFool · · Score: 1

    How much would it cost you to build a web server, a content server, a payment processsing server, and the network required to scale to hundreds millions of users. If you think that is cheap or easy I don’t think you’ve spent one day working in the real world of IT.

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  47. Re:Benefits of a in-house app without being one by shilly · · Score: 1

    Those 1bn customers bought iPhones so that, among other things, they could install apps without worrying they were going to break their phones, which is what Apple promises. Spotify want access to that, understandably, and the terms chafe, understandably. But tough.

    It's in Spotify's gift to set differential pricing (ie X via the web or an Android store where Spotify isn't charged a fee, if such a thing exists; X+30% via the App Store). And of course, Spotify does set differential pricing, with both a free and a pay model. But Apple isn't obliged to facilitate direct payments to Spotify with zero cut for itself via apps curated and downloaded in its Store, no matter how much this outrages your conscience.

  48. Re:Read their complaint, Altus. by dk20 · · Score: 1

    GIven apple's enormous profit margins.. i think it costs less then you think.

  49. Google Play Apps With 150 Million Installs Contain by Macdude · · Score: 1

    Google Play Apps With 150 Million Installs Contain Aggressive Adware
    https://tech.slashdot.org/stor...

    Tell me again the problem with Apple's walled garden?

    --
    "Grab them by the pussy" -- President of the United States of America
  50. Re:Read their complaint, Altus. by UnknowingFool · · Score: 1

    Given that you’ve never read Apple’s financials, their apps do not make them a lot of profit as many of them are free. Yet they have to maintain the infrastructure. They make the bulk of their profits on hardware. Check it for yourself.

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  51. Re: Bullshit yourself. by saloomy · · Score: 1

    Microsoft had > 90% of the desktop OS market, which is why they were considered a gateway to users. There was no other option. That's why they were a monopoly. They dominated the market. IOS world wide is in the 'teens in terms of market penetration, so yeah... bullshit to your bullshit on my bullshit.

  52. Re: That isn't a part of monopoly/abuse law by saloomy · · Score: 2

    Tell that to the masses shot and killed trying to get over the Berlin Wall, or the starving and parasite riddled North Koreans. Or the masses waiting for a Visa to enter the US.

    No, not everyone has that freedom.

  53. Re: That isn't a part of monopoly/abuse law by saloomy · · Score: 1

    Apple also has a monopoly on iOS cameras... but iOS itself isn't a monopoly. That means it doesn't make the App Store a monopoly.

  54. Re:Benefits of a in-house app without being one by TimothyHollins · · Score: 1

    But the thing is, I bought a *phone*. I did not buy a service, I did not buy a license. I bought a physical product, a phone. And I should be able to use that phone as I wish. If I bought an Intel CPU, and Intel told me that I would only be able to play Intel approved games on it (so they could charge developers 30%), that would be a serious abuse of monopoly powers. It doesn't matter that I could buy AMD, it's still abuse of their position. If I buy a physical product, I should be able to use that physical product according to my needs and desires.

    Should your car brand be allowed to determine where you are allowed to drive with your car? Because that is exactly what Apple is doing. They are selling a physical product and then deciding how you are allowed to use it. Just like that short bout of draconian DRM where you bought a physical disc for a game but you were only allowed to install it 3 times.

  55. Re:Read their complaint, Altus. by dk20 · · Score: 1

    Given that youâ(TM)ve never read Appleâ(TM)s financials,

    That is a terrible assumption on your part...

    You mean stuff like this:

    Apple reported that its App Store generated over $26.5 billion in revenue for developers in 2017, which was up about 30% year-over-year. This means that the App Store created approximately $11.5 billion in revenue for the company. Growth of services revenue is one of the major positive points for investors since it is growing faster than the rest of the company with higher margins

  56. Re: That isn't a part of monopoly/abuse law by Immerman · · Score: 1

    A tragic point. I stand corrected.

    --
    --- Most topics have many sides worth arguing, allow me to take one opposite you.
  57. Re:Benefits of a in-house app without being one by dcw3 · · Score: 1

    You bought a phone and knew exactly what you were getting along with it. To pretend otherwise is just BS. If you don't like it, buy a different phone.

    --
    Just another day in Paradise
  58. Re:Read their complaint, Altus. by UnknowingFool · · Score: 1

    Apple reported that its App Store generated over $26.5 billion in revenue for developers in 2017, which was up about 30% year-over-year. This means that the App Store created approximately $11.5 billion in revenue for the company. Growth of services revenue is one of the major positive points for investors since it is growing faster than the rest of the company with higher margins.

    You also said:

    GIven apple's enormous profit margins.. i think it costs less then you think.

    Do you understand the difference between revenue and profit?

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  59. Re:Benefits of a in-house app without being one by exomondo · · Score: 1

    If you had a brick and mortar electronics store would you sell Google/Apple streaming boxes without being compensated?

    The enormous profit they make on the devices they sell is the compensation, the incentive for people to buy them is the wide variety of choice on the App Store.

    spend your resources on flogging a product for somebody else for free?

    Yes, in fact most of the apps in the App Store are exactly that, free, with many of the developers of those apps still making money via in-app ads.

  60. Re:Benefits of a in-house app without being one by exomondo · · Score: 1

    But the thing is, I bought a *phone*. I did not buy a service, I did not buy a license.

    Nope, definitely a license on that software.

    They are selling a physical product and then deciding how you are allowed to use it.

    No it is both hardware and software but go ahead, wipe the software off it and do what you wish, go install Linux on it or something.

  61. Re:Benefits of a in-house app without being one by exomondo · · Score: 1

    And that fee covers everything from credit card processing to hosting and bandwidth, which for all of the free app downloads that Spotify enjoys is a non-negligible amount of money.

    So how is that different from all the free, ad-supported apps?

  62. Re: Read their complaint, Altus. by dk20 · · Score: 1

    Apple doesn't post profit by line, the same as they are trying to move away from publishing units sold.

    Do explain want you think this line means "with higher margins"

  63. Re:Benefits of a in-house app without being one by TimothyHollins · · Score: 1

    Good comment.

    Yes, there is a license on the software, and while I don't like that, it's pretty standard by now. Fair enough. The part I consider monopoly abuse is that I'm locked into it in a practical sense.
    I don't mind wiping the phone at all, but it is a non-trivial effort for most people. If it was available as a simple service for *everyone* I would be content. Though at that point it would probably be easier (and better) if Apple simply allowed non-Apple marketplaces.

  64. Re: That isn't a part of monopoly/abuse law by Highdude702 · · Score: 1

    So you're saying you cant survive without an iphone? Seems like you have a mental illness, you should probably be seeing a doctor instead of trying to be smart on slashdot.

  65. Re: That isn't a part of monopoly/abuse law by Highdude702 · · Score: 1

    Cydia, Jailbreak your iphone or STFU.

  66. Re: Read their complaint, Altus. by UnknowingFool · · Score: 1

    That was my point exactly: how can you possibly state that they make enormous profit when you can’t know unless you work in Apple accounting. Also “higher margins” is meaningless with exact numbers. 3% is higher than 2%. Also Apple stated that “services revenue” is growing. Services revenue for Apple includes everything from media, apps, iCloud, etc.

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  67. Re:Benefits of a in-house app without being one by Highdude702 · · Score: 1

    Part of an iphone for the plebs is the "experience". Seriously you cant make this shit up. What apple is doing, and iirc has even claimed so publicly is guaranteeing the "experience". It is a luxury item not a phone. That is like expecting to install your pinto radio in a Ferrari. sure with modification it can be done. Same is true for iphone. However neither will be supported or warrantied by the manufacturer.

  68. Re:Benefits of a in-house app without being one by Highdude702 · · Score: 1

    Yes because its so easy to pick "quality apps" form the 3000 google play stores. GLHF finding a way to remove the bootloader root kit.

  69. Re: Read their complaint, Altus. by dk20 · · Score: 1

    grab a reasearch report on AAPL.. take a read..

    let us know why apple is moving more and more to "serivces" if it isnt profitable?

  70. Re: Read their complaint, Altus. by UnknowingFool · · Score: 1
    Read the 10-K. Services include:
    • Digital Content and Services
    • iCloud
    • AppleCare
    • ApplePay

    The revenue Apple makes from services is growing; however, you can’t possibly state that they make “enormous profit” on apps. If I were to guess they are getting growing revenue off ApplePay.

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  71. Re:No you can't. by UnknowingFool · · Score: 1

    Spotify could upload their app, but they hardly need to do that, being the owners of the company making it, and it really REALLY doesn't help sell it when the only person able to "sideload your own apps" and avoid Apple is yourself. Kinda limited customer base, there.

    As an iOS developer you can sideload your own apps to your phone. This is not new.

    To use Apple's App Store, they have to abide by terms of Apple. Spotify can upload their app, and users download their apps for free every single day. Apple charges NOTHING for this. If companies do not generate revenue through their apps, Apple charges NOTHING. What Apple is charging is if users pay Apple through the Spotify app. For example if I pay for HBO through HBO.com, Apple charges nothing. If I pay HBO through HBO Now app, HBO Go app, Apple takes 30%. If HBO charge $1 per app, Apple gets 30%

    So, I doubt your name. It's half right: you're a fool, but you know exactly what you are doing, you are DELIBERATELY lying

    Please state which of the above facts are lies or do you simply not understand the identical policies of the Apple and Google stores.

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  72. Re:They "record" in public. Duh. by tepples · · Score: 1

    The recording artist specializes in a musical style that is impractical to perform live, such as [...] forms of electronic dance music.

    They can, you know, play in public.

    How does one play electronic dance music in public? Do you mean DJing?