Spotify Slams Apple’s 27% App Store Fees, Urges UK Govt. to Intervene

Music streaming giant Spotify has launched a scathing critique against Apple, condemning the newly introduced fees of up to 27% in the United States (via BBC News).

Apple’s recent announcement allowed app developers to sell products outside its store, but with the condition of continued commission payments.

Spotify, in response, labeled this move as “outrageous” and accused Apple of relentless profit protection, urging the UK government to prevent a similar imposition of fees in the country.

The controversial fees in the US resulted from an extended legal battle with Fortnite developer Epic Games. While Apple prevailed on multiple issues in court, it violated a law by restricting app developers from informing users about alternative payment methods.

Apple’s existing App Store payment system charges the largest developers a 30% fee, with smaller developers paying around 15%, and 85% of developers exempt from fees.

Post the legal ruling, Apple has introduced new rules in the US, allowing users to subscribe to services outside its system, but developers face a commission of up to 27%.

Court documents from Apple defended the commission, claiming it complies with the court ruling and that App Store developers benefit from Apple’s services, including platform integrity, marketing, advertising, and a secure user environment.

Spotify strongly opposed Apple’s policy, asserting that it contradicts the US court’s efforts to foster greater competition. The company accused Apple of prioritizing profits at the expense of developers and consumers under its app store monopoly.

The music streaming giant now argues that the UK’s Digital Markets, Competition and Consumer Bill should swiftly pass to prevent the implementation of similar fees by Apple, promoting a more competitive and innovative tech industry for UK consumers and businesses.

The UK government introduced the digital markets bill last year, which grants authorities the power to take targeted measures regarding app store transactions, ensuring open and competitive digital markets.