Speaking of Peter Kafka, here’s his report on Spotify’s complaint over Apple’s App Store policies:
In a letter sent this week to Apple’s top lawyer, Spotify says
Apple is “causing grave harm to Spotify and its customers” by
rejecting an update to Spotify’s iOS app.
The letter says Apple turned down a new version of the app while
citing “business model rules” and demanded that Spotify use
Apple’s billing system if “Spotify wants to use the app to acquire
new customers and sell subscriptions.” […]
“This latest episode raises serious concerns under both U.S. and
EU competition law,” Gutierrez wrote. “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 … we cannot stand by as
Apple uses the App Store approval process as a weapon to harm
Cry me a river. Spotify has long charged $12.99 via in-app subscriptions to get around the 30 percent “App Store tax”. And Apple has now cut the long-term subscription split from 70-30 to 85-15. And Spotify is the streaming service most at war with artists over their abysmal royalty rates.
Read between the lines and the real message here is that Apple Music is kicking Spotify’s ass.