Apple, Spotify Battle Over Music Streaming Customers

Apple Inc fought back on Friday against Spotify’s claims that the U.S. tech giant had hampered competition in music streaming by rejecting an update to the Swedish service’s iPhone app.

The two companies have gone head to head in the battle for music streaming customers since Apple Music was launched in more than 100 countries last year.

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Apple’s entry into the field sparked concerns from music streaming companies such as Spotify, which have argued that the 30 percent cut Apple takes of subscriptions in its App Store give its own service an unfair advantage. Spotify General Counsel Horacio Gutierrez reiterated those concerns in a letter to Apple first reported on Thursday as he protested the rejection of the latest version of the Spotify app.

But Apple General Counsel Bruce Sewell countered that the company deserves a cut of transactions in the App Store for its work operating the marketplace, according to a copy of a letter to Gutierrez seen by Reuters. Sewell insisted that Apple was treating Spotify as it would any other app maker, in keeping with antitrust law.

“We understand that you want special treatment and protections from competition, but we simply will not do that because we firmly adhere to the principle of treating all developers fairly and equitably,” Sewell wrote.

Gutierrez claimed Apple’s rejection of Spotify’s app raised “serious concerns” under competition law in the United States and Europe and the move was causing “grave harm to Spotify and its customers,” according to technology publication Recode.

A Spotify spokeswoman confirmed the accuracy of the report. A spokesman for Apple declined to comment.

Launched a decade ago, Spotify is the world’s biggest paid music streaming service with about 30 million paying users in 59 markets while Apple Music has some 13 million.

 

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Daniel Enisan is a content writer at edliner.com. With a degree in mass communication, Daniel is a full breed journalist. Daniel is a realist, loves the use of sarcasm, a movie and music junkie. He is also a poet and a good listener.

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