Recently Senator Warren of Massachusetts criticised technology giants Facebook, Google, Amazon, and Apple for putting their competitors at a disadvantage. And after Warren, it is Spotify who is chanting the same slogan – Apple is trying to eliminate competition.
Spotify CEO Daniel Ek today has said that the company is going to file an antitrust complaint against Apple with the Europian Commission(EC) for putting its competitors at a disadvantage. In an open letter, Daniel said, “In recent years, Apple has introduced rules to the App Store that purposely limit choice and stifle innovation at the expense of the user experience – essentially acting as both a player and referee to deliberately disadvantage other app developers.”
While Elizabeth Warren wants to dissolve Apple for it being in the power to control both the platform and store, Daniel raises a slightly different issue. He mainly blames Apple’s store policy.
The CEO pointed out that Apple imposes a 30% tax on purchases made through Apple’s payment system and every time users upgrade from Spotify’s free to premium service Apple’s taxation applies and that forces Spotify to “artificially inflate the price of its Premium membership well above the price of Apple Music.”
He then blamed Apple for not providing a robust alternative solution to Apple’s payment system. The Spotify CEO said that ignoring Apple’s payment system could cause serious damages to their communication with customers. “As an alternative, if we choose not to use Apple’s payment system, forgoing the charge, Apple then applies a series of technical and experience-limiting restrictions on Spotify.” He continued saying, “For example, they limit our communication with our customers-including our outreach beyond the app. In some cases, we aren’t even allowed to send emails to our customers who use Apple.”
Spotify is now asking for EC’s intervention into the whole matter as its talk with Apple regarding the issue didn’t produce desired results.”After trying unsuccessfully to resolve the issues directly with Apple, we’re now requesting that the EC take action to ensure fair competition,” CEO Daniel Ek said.
Via: Business Insider