Spotify Critics Apple’s ‘Outrageous’ 27% Commission

(CTN News) – In response to the new transaction fees being imposed by Apple in the US of up to 27%, Spotify has launched an outspoken attack.

The company announced Wednesday that it would allow app developers to sell their products in locations other than its own store – as long as they still pay commissions to Apple.

It is believed that Apple is “stopping at nothing” in order to protect its profits and that it is “outrageous.” Spotify is urging the government in the UK to do everything in its power to prevent similar fees from being imposed there as well.

After a long-running legal battle with Fortnite developer Epic Games, the firm introduced fees in the US.

By refusing to allow Spotify app developers to inform users of other payment methods, such as through links that bypass Apple’s App Store payment system, Apple violated US competition laws by refusing to let developers use links that bypass Apple’s own App Store payment system, for which Apple charges a 30% fee to app developers.

Apple has responded to these concerns by introducing a new set of rules in the US that will allow people to subscribe to services without using the company’s system, but will charge developers a commission of up to 27 percent.

As a result of the policy, Spotify has reacted furiously, stating it “flies in the face” of a court’s effort to encourage greater competition.

In a statement, Apple stated that it would stop at nothing to protect the profits it harvests from developers and consumers through its app store monopoly.

Historically, Spotify has been critical of Apple’s fees. In October 2023, it claimed that it controlled the internet in an “insane” manner.

Currently, it is recommending that the UK government intervene.

In my view, the UK’s Digital Markets, Competition and Consumer Bill must put an end to this false posturing, which is essentially an imitation of Apple’s charges.

Our firm recommendation is for UK lawmakers to swiftly pass the bill in order to prevent Apple from implementing similar fees, which will help create a more competitive and innovative tech industry for UK consumers and businesses.”

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