Music streaming service Spotify Technology SA pays Apple Inc a 15% fee on about 680,000 of its 100 million premium customers, Apple disclosed in a response to Spotify’s complaint with European antitrust regulators.
In March, Spotify filed a complaint with European Union regulators saying that Apple’s control of the App Store, including fees it charges for taking payments through the store, had made it unfairly difficult for rivals to compete for music subscribers.
Apple charges a 30% fee for in-app purchases made through the App Store, a fee that drops to 15% on subscription purchases after one year. In exchange, Apple handles all the mechanics of billing and payments in more than 100 countries.
Apple said that Spotify used its App Store billing system between 2014 and 2016. Because the 680,000 premium Spotify customers who signed up during that period have all been paying for more than a year, Spotify pays Apple the lower 15% fee on them, Apple said in its response.
Apple also said that Spotify has paid it nothing for premium subscribers who signed up during the past three years because Spotify has not used Apple’s in-app purchase system.
MacDailyNews Take: It’s easier to litigate than to compete. Spotify is a lazy company.
It really makes no sense to subscribe to Spotify when it has 40% fewer tracks than Apple Music for the exact same price. Apple Music boasts a catalog of 50 million songs; Spotify has just 30 million. If you’re still subscribing to Spotify, it’s past time for you to cancel it and upgrade to Apple Music. (See also: How to move your Spotify playlists to Apple Music.)