Spotify files antitrust complaint against Apple

The music streaming service alleges Apple Music has an "unfair advantage'' on the App Store.

Spotify has filed a complaint with the European Union (EU) against Apple. Spotify announced the decision in a recent blog post.

Why is Spotify filing a complaint against Apple?

Spotify alleges that its rival Apple Music has an unfair advantage in the tech company’s App Store. The streaming music company filed a complaint with the European Commission, the antitrust division of the EU. Spotify founder, Daniel Ek, wrote about the policies that he perceives as limiting competition, such as an ‘Apple tax.’

‘Apple requires that Spotify and other digital services pay a 30% tax on purchases made through Apple’s payment system, including upgrading from our Free to our Premium service. 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,’ wrote Ek.

Ek also wrote about how he feels Spotify would be punished if it doesn’t pay the tax that Apple charges streaming music services.

‘If we choose not to use Apple’s payment system, forgoing the charge, Apple then applies a series of technical and experience-limiting restrictions on Spotify,’ wrote Ek.

Ek also alleges that Apple blocks Spotify and other streaming music companies from syncing with Apple services like Siri or HomePod.

Can Spotify end the ‘Apple tax’?

Spotify’s complaint against Apple is part of a timely discussion about how big tech companies can get to limit competition. US Senator, Elizabeth Warren, recently made a proposal to break up companies like Apple to prevent situations like the one Spotify alleges is happening now. Warren proposes breaking the tech giant apart so its services don’t have dominance over competitors.

‘Apple, you’ve got to break it apart from their App Store. It’s got to be one or the other. Either they run the platform or they play in the store. They don’t get to do both at the same time,’ said Warren.

Spotify’s antitrust complaint against Apple will once again raise questions about how tech companies like Apple treat competition.

See an opportunity to trade?

Go long or short on more than 16,000 markets with IG.

Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.


IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Please see important Research Disclaimer.