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Apple – Spotify Banter Just Got Intensified

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26 Jun 2019

In March, Spotify lodged a complaint against the tech giant Apple in the European Union regarding the so-called Apple Tax. Spotify claims that Apple abuses the power of the App Store to shove down its rivals. The complaint implies that since iOS users are stuck using the App Store, Apple is violating antitrust laws and forces them to pay more for apps in the App Store.

apple-spotify-banter-just-got-intensified

Apple countered this complaint by filing in the EU which states that Spotify is exaggerating how much tax it pays. In contrary to Spotify’s complaint, Apple says that Spotify pays fees on less than 1% of its members i.e. t it is taking a 15% cut on only 680,000 of Spotify’s 100 million worldwide premium subscribers.

According to German newspaper Der Spiegel, Spotify declined to comment anything regarding this counter-attack by Apple.

This is not the first time that Apple’s taxation policies have come under the radar. Last year, Netflix stopped the new iOS subscribers from using the App Store to subscribe to its services. In turn, it asked them to sign up by going to its website.

What is your take on the Apple Tax scenario- who is at fault? Let me know in the comments.

 

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