Apple's relationship with Spotify has been under scrutiny in recent years, with the European Commission investigating whether Apple is stifling competition and innovation through its App Store rules. Amidst these investigations, Apple has pushed back against Spotify's claims that it is unfairly restricting the music streaming service's growth.
According to Apple, Spotify wants "limitless access" to the company's tools and services without paying for the value it receives from the App Store. This includes the ability to build, update, and share its app with Apple users in 160 countries worldwide. However, Apple notes that Spotify pays nothing for these services, which has led to tensions between the two companies.
The European Commission launched an investigation into the streaming music market and Apple's App Store policies in response to complaints from Spotify. The company filed a final complaint in Europe in 2019, leading to a Statement of Objections from the European Commission in 2021. Over the past decade, Spotify has met with the commission 65 times to try to convince it that Apple's rules are harming competition and stifling growth.
Apple argues that while Spotify claims its policies are harming competition, the streaming music market is actually growing. The company notes that the commission was unable to find evidence of anti-competitive practices or harm to consumers from requiring app developers to use in-app purchases. Instead, the investigation shifted to Apple's anti-circumvention rules, which prevent apps from informing users about lower subscription prices available outside of the App Store.
According to Apple, Spotify is not seeking a better deal for consumers or promoting competition; rather, it wants to rewrite the rules to suit its own interests. The company claims that Spotify wants access to Apple's technology, App Store reach, and to monetize through the App Store without paying anything to Apple.
The European Commission has stated that Apple's anti-circumvention rules are "detrimental" to users of music streaming services on Apple devices, potentially leading to confusion and higher prices. However, Apple argues that this view is misguided and influenced by Spotify's ongoing complaints.
Apple notes that Spotify is the dominant streaming music provider in Europe and other countries, with much of its success attributed to the App Store. The company uses thousands of Apple's APIs across 60 frameworks and has worked seamlessly on Apple devices due to Apple's engineering efforts.
If the EU does fine Apple over this matter, the company will likely appeal the decision. The ongoing battle between Apple and Spotify is a testament to the challenges facing app startup ideas in today's competitive market.
Update: In response to the controversy, Spotify stated that it does not have a level playing field with Apple and trusts that the European Commission will take action to create a fair ecosystem.