Will Spotify Survive Apple’s Actions?

Apple in the US has charged Spotify with a new fee dispute that can reach up to 27%. This matter is upsetting Spotify which could lead them to launch a forceful attack.

Apple announced on Wednesday that it will allow app developers to sell its products other than their Apple store. This would only happen if they got their commissions. Spotify called this action ‘outrageous’ and Apple was accused of this action. Spotify urged the British government to take similar actions in order to prevent fees being paid in the UK.

With all that is going on, Apple had to be approached in order to get a comment. They mentioned that the fee was introduced in the US due to the long-running legal battle that was going on with Fortnite developers.

As a result, the court ruled in favor of Apple on various issues. The only issue that was missed was not allowing app developers to inform individuals regarding their payment methods. This included the link throughs that bypass the App store payment system of Apple.

Largest developers pay 30% to use this system, while 15% or less are charged by smaller developers, and 85% of developers pay nothing at all.

Apple has implemented new regulations in the US as a result of the ruling, allowing users to subscribe to services without utilizing its system in exchange for a fee that could reach 27% for developers.            

In accordance with the documents filed by the firm, many statements mentioned the charge complaint during the rule, which adds to the fact that App store developers do in fact benefit from the services that Apple provides.

“All App Store developers – including those who place buttons or links with calls to action in their apps – benefit from (among other things) Apple’s platform integrity,” it stated in the filings.

The benefits were also listed that were given to the developers which included “marketing and external advertising, and a safe environment for users to download and purchase apps and in-app content.”

With a lot of anger, Spotify came out and stated that the policy “flies in the face,” straight of the US court because it felt it would enable a great competition.  The streaming giant continued with many statements and stated, “Once again, Apple has demonstrated that they will stop at nothing to protect the profits they exact on the backs of developers and consumers under their app store monopoly.” 

Over the past year, Spotify has had a dispute with Apple over the fees, which brings us to the question: will we still have access to Spotify on Apple products if they continue to move on this path?

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