“Late last month, Apple streaming music rival Spotify accused Apple of anti-competitive behavior for rejecting its updated iOS app on the grounds that it violated the App Store’s ‘business model rules,'” Patrick Seitz reports for Investor’s Business Daily.Spotify didn’t file legal action, but instead publicly issued a call to elected and regulatory officials to act.”
“The questions go beyond whether Apple can take up to a 30% cut of revenue from third-party services that use its App Store billing system. A central issue is whether Apple can prohibit those services from publicizing alternative ways of paying, including having customers pay them directly online,” Seitz reports. “Apple says Spotify violated the App Store rules by encouraging customers to bypass Apple’s billing system and get Spotify at a lower price by buying it directly from Spotify. Last fall, Spotify offered new subscribers three months of service for 99 cents if they signed up on Spotify’s website, followed by the regular $10 a month. It revived the campaign in June, angering Apple, which threatened to remove the Spotify app from its App Store unless it stopped telling iPhone users about the promotion. Spotify stopped advertising the promotion, but it also turned off its App Store billing option, prompting Apple to reject Spotify’s latest app.”
“On Capitol Hill, Spotify’s complaints have captured the attention of Warren Sen. Al Franken, D-Minn., and members of the Senate Judiciary Committee,” Seitz reports. “Rutgers University law professor Michael Carrier says Spotify’s claims don’t appear to rise to the level of antitrust. Such cases usually involve companies with monopoly power, typically over 70% market share. Apple’s iOS has about 30% market share in mobile operating systems in use, according to Net Applications.”
Read more in the full article here.
MacDailyNews Take: Once again, these are Apple’s platforms, built from the ground up. Apple owns them. Hence, Apple can charge what they like for the use of their App Store infrastructure.
Anyone who doesn’t like it, including Spotify or… oh, we don’t know, the developers of the “Make Me Indian” app 😉 can go to other smartphone platforms, including one with 82.6% market share as measured by units shipped which — drumroll, please — neatly negates any and all imperiously vapid antitrust claims of Apple having a “monopoly” in smartphones.
Elizabeth Warren accuses Apple of monopolistic-like actions; Spotify concurs – June 29, 2016