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Home / Business / The EU started investigating Apple over Spotify's competition requirements

The EU started investigating Apple over Spotify's competition requirements



Both technology companies have refused to comment on the report. However, Apple has already rejected Spotify's claims. It claimed that Spotify was really driven by "financial motivations" and wanted to take advantage of the App Store infrastructure without contributing to it. The company also rejected the notion that it was the privilege of Apple Music at a program level, as far as saying it was talking to Spotify about AirPlay and Siri integrations.

Developers in the App Store should not only give 30 percent cut of subscription revenue in the first year (1

5 percent in others), but cannot control customers to a remote site to subscribe to it. This allows providers to either charge extra for App Store-based subscriptions (as Spotify does now) or consume a large portion of their costs.

There is no certainty that an investigation will lead to what Spotify wants. However, a win for the company would have a significant effect on Apple. You may need to reduce or eliminate subscriptions, or make sure your devices work as closely with third-party media services as they do with Apple's own. While potentially liberating for users, it can eat into Apple's increasingly important service revenue and force it to rely on money from its budding music, news, and video offers.


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