“The majority of customers use their free, ad-supported product, which makes no contribution to the App Store,” Apple said. It also said that rate drops to 15 percent for subscriptions of more than a year. In its response to Spotify’s complaints, Apple said it doesn’t charge for distributing free apps and only takes the 30 percent from paid subscriptions on its platform. Its 2014 acquisition of Beats came as the iPhone maker moved into music streaming and on March 25, the Cupertino, California-based company plans to unveil a new video streaming and magazine services. The feud comes as Apple expands by launching new services, moving into new business areas that compete with third-parties on its platform.
Spotify, which offers both free and paid services, complained to the European Union’s powerful antitrust agency that Apple’s 30 percent cut of revenue was effectively a tax on competitors. The iPhone maker said the App Store contributed to Spotify becoming the business it is today, a public company that generates over a billion dollars of revenue per quarter, according to a statement on Friday. fired back at Spotify Technology SA’s antitrust complaint, saying the music streaming giant wants all the benefits of its app store without contributing to the marketplace.
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