Spotify annoyed with Apple’s “Tax” on Subscription fees

Spotify is the leading music providing service at the moment. With almost 100 million users, as of 2018, it enjoys about 37 percent of the market share, leading by almost twice of what Apple has with Apple Music. Speaking of the two, Spotify’s relations with Apple have been a bit salty lately.

According to a report by Variety, CEO of the company complained about Apple. To be more precise, we have to go over the background of the situation. Since the start, Apple has been charging a “cut” from companies providing subscription-based services. To put things in perspective, Apple charges a 30% cut forcing companies to increase their prices. It is understandable that readers are quite confused right now. A visual representation of the dilemma is displayed below:

Saavn fee on App Store vs their website

As seen above, the fees for Saavn are displayed in Pakistani Rupees. Converting that to dollars and we get 2.98$ via the App Store and 0.71$ via their website online. This was the same case with Spotify. To counter this, they removed subscription support from iOS devices, urging them to register via their website. This is where the CEO of Spotify emphasizes his complain.

He explained how Apple’s cut was forcing them to charge users $12.99 on the App Store. What caused problems was that Apple never mentioned this price difference on their app. Spotify claims that this is Apple’s tactic of promoting its Apple music. To be very honest, this seems quite plausible. Given that Apple Music costs $9.99, iOS users, avoiding the hassle of registering online, would be inclined to register for the company’s flagship service. It is sort of unfair and unethical from the trillion dollar giant. People at Spotify see it as such as well, forced to appeal with the European Commission.

In my opinion, this seems to be a logical claim. Not only is it unfair and use of informal means to negatively promote a brand, but it also ruins the idea of competition. Dirty play, if you would. If the company does end up complaining to higher authorities, actions should be taken to stop Apple. It should be further noted that Apple should stop this unnecessary 30% cut. Lately, it seems as if Apple is carrying a vacuum to pull every last cent into its trillion dollar piggy bank but the world is finally catching up.

Sarmad Burki
Sarmad Burki is a Mathematician and a Economist with a passion for all things gaming and tech. His academics and professional experience combined with tech and gaming adds to his skills giving him a unique ability to observe the tech and gaming industry from various prespectives.

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Spotify annoyed with Apple’s “Tax” on Subscription fees

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