Apple Refutes Spotify’s Claims over Music Streaming Service Competition

Apple Music Vs Spotify

Apple Music Vs Spotify

Apple refuted Spotify’s claim that it is thwarting competition by rejecting the updates to the Swedish music streaming company’s app on the iOS.

Since launching the Apple Music in more than 100 countries last year, music streaming companies raised concerns on the Cupertino-based company. Spotify have been arguing that iPhone maker has an unfair advantage for taking 30% cut on subscriptions from its App Store.

Anti-competitive conduct aimed at Spotify

In a letter to Apple General Counsel Bruce Sewell, Spotify General Counsel Horacio Gutierrez said the iPhone maker’s action raised “serious concerns” under the competition laws in Europe and the United States.

According to him,  the iPhone maker cited its business rules as reason for blocking Spotify’s updates on its app. He added that the tech giant demanded  Swedish music streaming company to use its billing system if it wants to use the app to acquire new customers and sell subscriptions.

Gutierrez told Sewell, “This latest episode raises serious concerns under both U.S. and EU competition law. 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.”

He added, “We cannot stand by as Apple uses the App Store approval process as a weapon to harm competitors.”

Spotify has approximately 30 million paying subscribers in 50 markets. It is the world’s largest music streaming service provider.

Apple says Spotify wants special treatment

In response to Gutierrez’ claims, Sewell emphasized that Apple deserves to receive a commission on transaction in the App Store for its work operating the marketplace.

Sewell also stressed that the tech giant is following antitrust laws and it is treating Spotify the same way as other app developers.

“We understand that you want special treatment and protections from competition, but we simply will not do that because we firmly adhere to the principle of treating all developers fairly and equitably,” said Sewell in his letter to Gutierrez.

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