The struggle to be topped king of streaming continues as Spotify and Apple Music duke it out March 13. The most up-to-date growth comes after Spotify founder Daniel Ek and his workforce filed a grievance towards Apple alleging “unfair benefits” with regard to Apple’s App Store. After “cautious consideration” and what looks like earlier efforts to resolve the battle with Apple, the Spotify workforce proceeded ahead with the European Commission.
Spotify’s grievance facilities across the concern of Apple’s App Store insurance policies and logistics that might require Spotify to pay a supplementary tax and subsequently inflate the membership value above that of Apple Music.
“Apple requires that Spotify and different digital companies pay a 30 % tax on purchases made via Apple’s fee system, together with upgrading from our free to our premium service,” Ek mentioned. “If we pay this tax, it will drive us to artificially inflate the worth of our premium membership nicely above the worth of Apple Music. And to maintain our value aggressive for our clients, that isn’t one thing we are able to do.”
The Spotify founder additionally identified discrepancies the place apps like Uber weren’t affected by Apple’s tax insurance policies, noting that “app shops shouldn’t be allowed to manage the communications between companies and customers, together with putting unfair restrictions on advertising and promotions that profit customers.”
Ek made it clear that this isn’t a “Spotify-versus-Apple concern,” however somewhat a problem about “competitors on the deserves.”