UPDATED 22:33 EDT / JULY 03 2016

NEWS

Apple fires back at Spotify claims of unfair treatment, anti-competitive behavior

Apple, Inc. has fired backed at claims from Spotify AB that they are being treated unfairly by claiming that Spotify is asking for exemptions to App Store rules that are applied equally to everyone.

The row started last week when Spotify released a copy of a letter it sent to Apple’s lawyers which claimed that Apple was refusing to let it update its iOS app as a “weapon” to prevent competitors of Apple Music from getting ahead.

Among other claims Spotify stated that the rejection of the app update was “causing grave harm to Spotify and its customers” and that the rejection raised serious concerns under competition law; the letter added that Apple turned down the app on the basis of “business model rules” that demanded that Spotify must use Apple’s billing system.

Apple in return has fired back and denied the allegations.

“We find it troubling that you are asking for exemptions to the rules we apply to all developers and are publicly resorting to rumors and half-truths about our service,” Apple general counsel Bruce Sewell stated in a letter sent to Spotify.

“Our guidelines apply equally to all app developers, whether they are game developers, e-book sellers, video-streaming services or digital music distributors; and regardless of whether or not they compete against Apple. We did not alter our behavior or our rules when we introduced our own music streaming service or when Spotify became a competitor,” Sewell added. “Ironically, it is now Spotify that wants things to be different by asking for preferential treatment from Apple.”

To the suggestion from Spotify that Apple’s behavior was anti-competitive, Sewell wrote that “there is nothing in Apple’s conduct that ‘amounts to a violation of applicable antitrust laws.’ Far from it … I would be happy to facilitate an expeditious review and approval of your app as soon as you provide us with something that is compliant with the App Store’s rules.”

Billing

Apple is right when it states that it treats all apps equally, but the dispute here comes down to one thing only: billing.

Apple insists that it takes a cut of 30 percent of every purchase made through an app listed in the App Store, and previously that has seen Spotify charge $12.99 for its premium service for users of the iOS app versus the $9.99 standard premium subscription cost with Spotify directly or through their Android app.

Spotify has attempted to go around Apple by encouraging subscribers using the iOS app to subscribe directly with Spotify itself to save money, something that has naturally upset Apple.

The question is does encouraging users to sign up directly with Spotify but still only supporting payments through Apple in their iOS app breach Apple’s rules?

Conversely, is Apple being anti-competitive and even breaching anti-trust laws by forcing app makers to exclusively use its payment services?

The only way both questions could be answered is before a court, and given the level of the dispute that may well occur sometime in the near future.

Image credit: Ryan Casey/YouTube/CC by 2.0

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