Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Spotify attacks Apple’s ‘outrageous’ 27% commission

by January 19, 2024
January 19, 2024
Spotify attacks Apple’s ‘outrageous’ 27% commission

Spotify has launched an outspoken attack on new transaction fees of up to 27% being levied by Apple in the US.

On Wednesday, Apple announced it would permit app developers to sell products in places other than its own store – but only if they still paid commission.

Spotify said that was “outrageous” and accused Apple of “stopping at nothing” to protect its profits. It is urging the British government to prevent similar fees being levied in the UK.

The firm introduced the fees in the US as a result of a long-running legal battle with Fortnite developer Epic Games.

The court found in favour of Apple on multiple issues, but it fell foul of a law by not allowing app developers to tell people about other ways of paying, including through links that bypass Apple’s own App Store payment system.

Apple charges the biggest developers a 30% fee to use this system, though smaller developers pay around 15%, and 85% of developers don’t pay a fee at all.

As a result of the ruling, Apple has introduced a new set of rules in the US which will allow people to subscribe to services without using its system, but it will charge developers up to a 27% commission to do so.

According to court documents filed by the firm, it said the commission charge was compliant with the court ruling, adding that App Store developers benefit from Apple’s services.

“All App Store developers – including those who place buttons or links with calls to action in their apps – benefit from (among other things) Apple’s platform integrity,” it said in the filings.

It also listed other benefits developers receive, including: “marketing and external advertising, and a safe environment for users to download and purchase apps and in-app content.”

Spotify has reacted with fury, saying the policy “flies in the face” of the US court’s attempt to enable greater competition.

“Once again, Apple has demonstrated that they will stop at nothing to protect the profits they exact on the backs of developers and consumers under their app store monopoly,” it said in a statement.

Spotify has a history of attacking Apple over its fees. In October 2023 it accused it of having an “insane” level of control over the internet.

Now, it says the UK government should intervene.

“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.

“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 Government put forward its digital markets bill last year aimed at curbing the power of the tech giants.

The bill would empower authorities to “consider targeted measures” regarding app store transactions to maintain open and competitive digital markets, a spokesperson for the Government said.

However, the spokesperson declined to say if authorities would intervene in Apple’s case after the bill passes.

“It is not for us to comment on specific cases,” the person said.

Read more:
Spotify attacks Apple’s ‘outrageous’ 27% commission

0
FacebookTwitterGoogle +Pinterest
previous post
Top conservative group hammers House Republicans for passing short-term funding bill
next post
Jeremy Hunt hints further tax cuts may be coming

You may also like

Morgan Stanley exit deals blow to Mark Carney’s...

January 3, 2025

Two Government Ministers Quit, Dealing Fresh Blow to...

March 26, 2024

EU votes to force all phones to use...

October 5, 2022

Hundreds of Married Women Could Receive State Pension...

August 9, 2023

Jeremy Hunt orders review ‘to end tourist tax’...

February 5, 2024

Aston Martin hopes for share price boost after...

May 3, 2023

Record year for Ferrari sees supercar maker profits...

February 1, 2024

m3ter raises $14M Series A to fuel further...

April 27, 2023

Revive Your Designs: The Power of the One-Click...

December 30, 2024

Investors lose appetite for buying into UK plc

September 30, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump wins over lifelong Democrat autoworker with ‘big, beautiful bill’ vehicle loan tax benefit

      June 27, 2025
    • EXCLUSIVE: Trump admin takes action after massive fraud uncovered at agency Dems tried to protect from DOGE

      June 26, 2025
    • FBI investigating Iran strike leaker, Leavitt says: ‘They should be held accountable’

      June 26, 2025
    • SMCI Stock Surges: How to Invest Wisely Now

      June 26, 2025
    • NEW! 5 Significant Additions to Our Professionally-Curated Market Summary Dashboard

      June 26, 2025
    • ‘Presidential incapacity’: Senate Republican seeks paper trail of Biden’s autopen use

      June 26, 2025

    Categories

    • Business (8,316)
    • Investing (2,074)
    • Politics (15,824)
    • Stocks (3,172)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved