APPLE HAS FILED ITS RESPONSE to Spotify's European antitrust complaint, claiming the music streaming service is exaggerating how much so-called 'Apple tax' it pays.
Spotify filed a complaint with the European Commission (EC) back in March, alleging that by charging a 30 per cent fee on any sales through its App Store, including subscription services, the firm is putting itself at an "unfair advantage".
Apple, which earlier hit back at the complaint in a lengthy post on its website, has this week responded to the EC complaint with its own filing that says Spotify is only paying this 'Apple tax' on less than one per cent of its paid subscribers.
As reported by Der Spiegel, Apple is specifically arguing that Spotify only pays App Store fees on 680,000 of its over 100 million subscribers, and it's only 15 per cent - the cut that Apple takes for recurring subscriptions.
The firm adds that this revenue share only impacts those customers Spotify acquired during 2014 and 2016. These are those who signed up for a subscription through an in-app purchase, as Spotify opted out of this system in 2016.
These comments are in stark contrast to the claims made by Spotify CEO Daniel Ek back in March when he wrote that "Apple requires that Spotify and other digital services pay a 30 per cent tax on purchases made through Apple's payment system."
"If we pay this tax, it would force us to artificially inflate the price of our premium membership well above the price of Apple Music. And to keep our price competitive for our customers, that isn't something we can do."
Spotify has long had beef with Apple's "anticompetitive" App Store restrictions; back in 2015, the firm filed a complaint alleging that Apple is trying to use its influence and power in the industry to convince music labels to put an end to the free streaming services offered by the likes of Spotify. µ
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