Fast Facts: How Consumers Lose Out

Apple’s practices harm consumers and competitors

Truth be told, at Spotify, we are big fans of Apple. You will find their hardware across our offices and in the hands of thousands of our employees. We also love having the opportunity to be on the Apple App Store, a platform where we can offer our services to millions of our fans around the world.

But Apple uses its position to take choices away from consumers, making it harder and harder for companies like Spotify to bring the best we have to offer to our fans.
01 APPLE CHARGES A
DISCRIMINATORY 30% TAX

Spotify has  two choices — (1) Pay Apple’s 30% fee per every transaction, forcing us to increase our prices for consumers, and making Apple Music the cheaper option; or (2) face Apple’s gag order, which limits how we communicate about amazing deals, new products, and money-saving promotions.

Either option creates a worse experience for our customers.

02 Apple denies consumers
true choice

Because of Apple’s policies they won’t let us show consumers in our own app:

  • Prices of our products, like subscriptions or audiobooks
  • How and where to buy them
  • Payment options beyond what Apple mandates (e.g., a credit card or PayPal, etc.) or how to update their credit card information in-app
  • Promotions like our offer for three months of Premium for only 99 cents

Because of Apple’s tight control of the iPhone, many consumers don’t even realize they are in Apple’s walled garden.

03 Apple’s actions halt
competition and violate the law

For companies big and small, competition doesn’t work unless it’s built on an even playing field.

Apple arbitrarily moves the goalposts and frequently changes the rules for competitors. Apple has also routinely rejected and delayed enhancements to the Spotify app that would improve our customers’ experiences—and at business-critical moments for us, like during the launch of our Audiobooks service.

Importantly, they put none of these roadblocks in front of their own services. It’s not Apple’s role to decide who the winners and losers will be — consumers should have that right. Apple must stop interfering and let competition work. That’s what it means to play fair and comply with the law.