Spotify has filed an anti-trust lawsuit against Apple accusing the latter of following unfair and uncompetitive trade practices that not only harm the competition but also limits the choice consumers can make.
In its complaint filed with the European Union, Spotify also took exception of the 30 percent cut Apple takes from each subscription made via the App Store which the company CEO said is way too high for them to remain competitive. Chief Executive Daniel EK said they are left with no choice but to inflate their prices to absorb the 30 percent ‘tax’ cut made by Apple.
The above is all the more hurting when Apple is offering a similar service but at a lower rate. This immediately puts the competition at a severe disadvantage vis-a-vis Apple. These apart, EK said Apple also limits updates that would have made for a better user experience, which again puts Spotify in poorer light compared to Apple’s own music streaming service.
If that isn’t enough, Apple has also kept a lid on the services it offers on several of its other products range. For instance, the HomePod or Apple Watch is only compatible with Apple Music at the moment while Spotify is off bounds on both platforms. This again hurts Spotify’s chances severely as consumers are far more likely to opt for a service – read Apple Music – that would have a more universal appeal across more device types.
Spotify’s complaint apart, there also seems to be a consensus building in the US about the growing clout that several companies has begun to exercise on the masses or the market. Companies of the likes of Google, Facebook, Apple, Amazon and so on have already been identified and are likely to figure in the next US presidential poll agenda as likely targets for pruning of their services or operations. This again is aimed at ensuring a proper competitive environment for all companies to thrive on.
Apple meanwhile is yet to respond to the development though this is going to be one battle that no doubt will be keenly watched across the industry.