Spotify hasfiled a complaint to hit Apple with the European Union antitrust. In that lawsuit the company is arguing that Cupertino is damaging consumer choice and limiting innovation by the rules and restrictions imposed on the App Store.
CEO Daniel Ek said: “Apple has launched a deliberate restriction on the App Store in recent years to limit the choice and kill the innovation, sacrificing the user experience. Apple is actually a player and referee, deliberately put other App developers at a disadvantage.”
“After trying unsuccessfully to resolve the issues directly with Apple” now the company has acted upon it.
In a post on the company’s official blog, Daniel Ek, CEO of Spotify has expressed his frustration for 30% that Apple holds back for subscriptions made through in-app purchases.
It seems that this “tax” is designed to damage the streaming services that are in competition with those of Apple. The regulations are constantly changing, making the industry insupportable upset.
The legal chief of Spotify, Horacio Gutierrez, said: “When Apple changed from a platform provider to a direct competitor, the incentives to suppress opponents (such as Spotify) have become stronger, and restrictions have begun to become more frequent and stricter.”
He said that the company was enforced to use the in-app purchase system back in 2014, which was later raised for Spotify Premium from $11.30 to $14.70, while Apple Music now uses Spotify for the original price of $11.30.
Moreover, Ek also said that Apple “blocks our updates that improve the user experience”. Just like Apple prevented the integration of services and hardware. He explained that Apple’s voice assistant Siri ‘s voice recognition system does not sustain Spotify and Apple has refused to let Spotify’s app be on the Apple Watch as well.
Gutierrez said: “Promotion is critical to our business. This is how we turn free users into premium users.”
The company has declined to reveal the financial losses that they have tolerated in this time period.