Spotify vs Apple Music: Popular Streaming Service Accuses Tech Giant After Blocked Update [VIDEO]
The titans of the music-streaming industry are currently in conflict, as Spotify, arguably the world's leading music-streaming service, has accused Apple of using its App Store approval process to boost its own streaming service, Apple Music.
Spotify's tirade against Apple has been going on for a while now, with the two firms disagreeing on Apple's billing policies. The conflict reached a pivotal point recently, however, when Apple blocked an update to Spotify's iPhone app, citing company and billing policies. Simply put, Apple was demanding that Spotify use Apple's billing system if it wants to have its app in the Apple App Store updated.
In a letter sent to Apple's lawyer, Spotify has claimed that Apple's actions are causing "grave harm to Spotify and its customers" by refusing to allow an update to its iOS apps. The letter, sent on June 26 by Spotify general counsel Horacio Gutierrez to Apple general counsel Bruce Sewell, further alleges that Apple's policies in App Store billing have always favored the tech giant.
"This latest episode raises serious concerns under both U.S. and EU competition law. 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 competitors," the letter read.
Spotify first took a stand against Apple last year, when the music-streaming service opted to hike up the price of its mobile subscription fee to $12.99 for iOS users, as a means to account for Apple's 30 percent revenue on the firm's premium services, which normally cost $10.
Eventually, Spotify opted to shut down in-app purchases on its iOS apps altogether, advising users of Apple devices to subscribe to the service through the official Spotify website instead. By doing so, Spotify was able to charge its iOS users its actual subscription price, and it was able to cut off Apple's revenue from its services as well.
It would seem like Apple's decision to block Spotify's update to its apps is a retaliation for the music-streaming service's recent decisions.
Spotify is currently the leading music-streaming service, with about 30 million paying subscribers. In contrast, Apple Music currently has about 15 million paid subscribers.
