Spotify slams Apple’s 27% transaction fees in US, calls for UK government intervention

Spotify has launched a strong critique against Apple’s newly imposed transaction fees of up to 27% in the United States.

Apple recently announced that app developers could sell products outside its store but still had to pay a commission. Spotify labeled this move as “outrageous” and accused Apple of going to extreme lengths to safeguard its profits.

The music streaming giant is urging the British government to prevent similar fees in the UK.

Apple introduced these fees in the US following a legal battle with Epic Games, the developer of Fortnite.

While the court ruled in favor of Apple on various issues, it found the company in violation of the law by restricting app developers from informing users about alternative payment methods.

Apple charges a 30% fee for its payment system, with smaller developers paying around 15%, and 85% of developers not paying any fee.

In response to the court ruling, Apple in the US has implemented new rules allowing users to subscribe to services without using its system, but developers are subjected to a commission of up to 27%.

Apple contends that this commission is in compliance with the court ruling, emphasizing the benefits developers receive, such as platform integrity, marketing, advertising, and a secure environment for app transactions.

Spotify strongly criticized Apple’s policy, asserting that it contradicts the court’s intent to promote competition.

The music streaming service accused Apple of prioritizing its profits over developers and consumers. In a statement, Spotify called on the UK government to intervene, urging swift passage of the Digital Markets, Competition, and Consumer Bill to prevent Apple from implementing similar fees in the UK.

The bill aims to curb the power of tech giants and empower authorities to take measures regarding app store transactions for maintaining open and competitive digital markets.

“The UK’s Digital Markets, Competition and Consumer Bill must put an end to this false posturing, which is essentially a recreation of Apple’s fees,” Spotify stated.

“We strongly urge UK lawmakers to pass the bill swiftly to prevent Apple from implementing similar fees, which will help create a more competitive and innovative tech industry for UK consumers and businesses.”

The UK government has introduced the digital markets bill to address the dominance of tech giants, allowing authorities to consider targeted measures for app store transactions to ensure open and competitive digital markets.

However, the government spokesperson declined to comment on potential intervention in Apple’s case after the bill passes, stating, “It is not for us to comment on specific cases.”

Source-BBC