Apple says Spotify 'wants all the benefits of a free app without being free'
The company said, "At its core, the App Store is a safe, secure platform where users can have faith in the apps they discover and the transactions they make. And developers, from first-time engineers to larger companies, can rest assured that everyone is playing by the same set of rules. That's how it should be. We want more app businesses to thrive - including the ones that compete with some aspect of our business, because they drive us to be better. What Spotify (SPOT) is demanding is something very different. After using the App Store for years to dramatically grow their business, Spotify seeks to keep all the benefits of the App Store ecosystem - including the substantial revenue that they draw from the App Store's customers - without making any contributions to that marketplace. At the same time, they distribute the music you love while making ever-smaller contributions to the artists, musicians and songwriters who create it - even going so far as to take these creators to court. 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, what we've built and what we do to support independent developers, musicians, songwriters and creators of all stripes.So we want to address a few key points: Spotify claims we're blocking their access to products and updates to their app. Let's clear this one up right away. We've approved and distributed nearly 200 app updates on Spotify's behalf, resulting in over 300M downloaded copies of the Spotify app. The only time we have requested adjustments is when Spotify has tried to sidestep the same rules that every other app follows...Spotify is free to build apps for - and compete on - our products and platforms, and we hope they do. Spotify wants all the benefits of a free app without being free. A full 84% of the apps in the App Store pay nothing to Apple when you download or use the app...The only contribution that Apple requires is for digital goods and services that are purchased inside the app using our secure in-app purchase system. As Spotify points out, that revenue share is 30% for the first year of an annual subscription - but they left out that it drops to 15% in the years after...We share Spotify's love of music and their vision of sharing it with the world. Where we differ is how you achieve that goal. Underneath the rhetoric, Spotify's aim is to make more money off others' work. And it's not just the App Store that they're trying to squeeze - it's also artists, musicians and songwriters...We're proud of the work we've done to help Spotify build a successful business reaching hundreds of millions of music lovers, and we wish them continued success - after all, that was the whole point of creating the App Store in the first place." Reference Link AAPL SPOT