Apple Criticizes Spotify for ‘Paying Nothing’: Says ‘Free Isn’t Enough’

European Union imposes a staggering $2 billion fine on Apple for its App Store policies. Apple retaliates by targeting Spotify, the original complainant.

On Monday, Apple issued a comprehensive statement addressing the $2 billion fine imposed by the European Commission, stemming from an investigation into the company’s App Store practices. The fine resulted from a complaint filed by music streaming service Spotify, which highlighted Apple’s policies prohibiting app developers from directing users to subscribe outside the app to bypass Apple’s in-app purchase fees. The EU investigation determined that Apple violated antitrust laws and engaged in anti-competitive behavior.

While Spotify hailed the EU’s decision, Apple expressed intent to appeal, as stated in its release. Notably, a significant portion of the statement is dedicated to addressing Spotify’s role in the matter.

Apple’s statement on Spotify pulls no punches.

Entitled “The App Store, Spotify, and Europe’s Thriving Digital Music Market,” Apple’s statement primarily addresses Spotify rather than the EU decision itself.

Apple emphasizes in its statement that Spotify does not contribute financially to the iPhone-maker for the Spotify app, despite its extensive usage on Apple devices, which Apple states has exceeded “119 billion downloads, redownloads, or updates.”

Furthermore, Apple highlights its collaboration with Spotify to ensure compatibility with various Apple features such as Siri, CarPlay, Apple Watch, AirPlay, Widgets, and more. Apple notes that Spotify leverages its tools like TestFlight and Apple’s APIs and that its review team “often prioritizes reviews” of Spotify app updates in the Apple Store “upon Spotify’s request.

Apple also appears to subtly highlight Spotify’s own issues regarding monopolization, noting that the music streaming service “holds a 56 percent share of Europe’s music streaming market — more than double that of its closest competitors.”

Furthermore, Apple accuses Spotify of seeking to enable direct payments within the iOS app, utilizing Apple’s tools without participating in the revenue-sharing program that other developers adhere to. Apple references its “reader rule” policy, which permits developers to incorporate a web page link in the app directing users to account services, including billing management and sign-ups. However, Apple notes that Spotify has not utilized this option.

“Despite that success, and the App Store’s role in making it possible, Spotify pays Apple nothing,” Apple says.

“But free isn’t enough for Spotify,” Apple continues. “They also want to rewrite the rules of the App Store — in a way that advantages them even more.”

“Instead, Spotify wants to bend the rules in their favor by embedding subscription prices in their app without using the App Store’s In-App Purchase system,” Apple says. “They want to use Apple’s tools and technologies, distribute on the App Store, and benefit from the trust we’ve built with users — and to pay Apple nothing for it.”

“In short, Spotify wants more.”

Apple concludes its statement by announcing its intention to appeal the EU decision. While the outcome of the appeal remains to be seen, what truly intrigues is the trajectory of Apple and Spotify’s relationship in the days ahead.