Spotify Legal Chief: 'Apple's Ability to Strangle its Competitors is Unprecedented'

Amid the ongoing legal battle between Epic Games and Apple, Spotify's chief legal officer and head of global affairs Horacio Gutierrez penned an anti-App Store op-ed in The Wall Street Journal, where he summarizes Spotify's issues with Apple.

spotify complaint apple eu
Gutierrez says that Spotify is one of the few companies that insists Apple is a "ruthless bully that uses its dominance to hobble competitors."

Spotify has long been upset with Apple's App Store fees, as the 15 to 30 percent cut that Apple takes from subscriptions means that Spotify has to either raise its prices for those who sign up via the ‌App Store‌ or decline to offer subscriptions on iOS at all, which is what Spotify has opted for.

Apple's "antisteering" rules prevent Spotify from directing iPhone and iPad customers to the Spotify website to sign up, which Spotify argues gives Apple Music some major advantages.

The company has also argued that Spotify pays 15% of its revenue on only 0.5% of its subscriptions. But that's because Apple's exorbitant 30% tax on new subscriptions forced us to turn off in-app purchases in 2016. It made more business sense to cut iPhone and iPad users off from a path to subscriptions than to absorb the 30% cut for new ones.

Gutierrez points out the many regulatory issues that Apple is facing in Europe and the United States. The European Commission in April found that Apple breached EU competition law with ‌Apple Music‌, and in April, the Senate Judiciary Antitrust Subcommittee questioned Apple's App Store policies. Spotify, Tile, and others attended the latter hearing and said that if Apple's ‌App Store‌ rules aren't changed, Apple will take over the internet, "limiting innovation, squashing small businesses, and all but eliminating customer choice."

Spotify is asking the U.S. to speed up its regulatory initiatives against Apple with "urgent, narrowly tailored updates" to antitrust law to "end such egregious abuses."

Gutierrez says that Spotify isn't asking for special treatment, but wants "fair treatment," and he sums up his piece by stating that Apple's "ability to strangle its competitors is unprecedented." He says that those in a position "to do something" have now "seen past Apple's facade" and are now acting on the behalf of "innovators and consumers around the world."

Tag: Spotify

Popular Stories

iPhone 17 Slim Feature Single Camera 1 Redux

'iPhone 17 Air' Launching Later This Year With These 10 New Features

Wednesday January 15, 2025 7:16 am PST by
While the so-called "iPhone 17 Air" is not expected to launch until September, there are already plenty of rumors about the "ultra-thin" device. Overall, the "iPhone 17 Air" is shaping up to be a mixed bag. Due to its thinness, the device is expected to have some limited specifications compared to the iPhone 17 Pro models, including only a single rear camera, only a single speaker, no SIM...
2024 iPhone Boxes Feature

Apple Changes Trade-In Values for iPhones, iPads, Macs, and More

Thursday January 16, 2025 6:45 am PST by
Apple today adjusted estimated trade-in values for select iPhone, iPad, Mac, and Apple Watch models in the U.S., according to its website. Some values increased, while others decreased. The changes were not too significant, with most values rising or dropping by $5 to $50. We have outlined some examples below: Device New Value Old Value iPhone 15 Pro Max Up to $630 U ...
new magsafe charger

Apple Releases Updated MagSafe Charger Firmware

Tuesday January 14, 2025 11:30 am PST by
Apple today released new firmware designed for the 25W MagSafe Charger that is compatible with the iPhone 12 and later and the latest AirPods and Apple Watch models. The updated firmware is version 2A143, up from the 2A138 firmware that the accessory shipped with. In the Settings app, you'll see a different version number than the internal firmware number. The 2024 MagSafe charger was...
Generic iOS 18

iOS 18.3 Coming Soon: Here's What's New

Monday January 13, 2025 5:33 am PST by
iOS 18.3 is currently in beta for developers and public beta testers. So far, the upcoming iPhone software update is very minor in scope. Below, we outline what is new in iOS 18.3 so far. The only potential new feature coming to iPhones with iOS 18.3 so far is robot vacuum support in the Home app, but this functionality is not yet live. Apple is laying the groundwork for the feature,...
iPhone 17 Pro Dual Tone Feature 1

iPhone 17 Pro Launching Later This Year With These 8 New Features

Thursday January 9, 2025 5:45 am PST by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. iPhone 17 Pro concept based on rumors Below, we recap key changes rumored for the iPhone 17 Pro models as of January 2025: More aluminum: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models ...
Generic iOS 18

Everything New in iOS 18.3 Beta 3

Thursday January 16, 2025 12:39 pm PST by
Apple provided the third beta of iOS 18.3 to developers today, and while the betas have so far been light on new features, the third beta makes some major changes to Notification Summaries and also tweaks a few other features. Notification Summary Changes Apple made multiple changes to Notification Summaries in response to complaints about inaccurate summaries of news headlines. For...
severance new york promo 1

Apple Promotes Severance Season 2 Premiere With Lumon Industries Pop-Up and Visits From Actors

Tuesday January 14, 2025 3:47 pm PST by
Ahead of the season two premiere of hit TV show Severance, Apple is marketing the show with a fun Severance pop-up at the Grand Central Terminal in New York City. Apple has assembled a glass cube with workstations that are identical to the setups that Lumon employees use on the show, complete with employees "working," doing yoga, playing catch, throwing paper airplanes, sipping coffee, and...
airpods pro 2 gradient

AirPods Pro 3 Expected This Year: Here's What We Know

Wednesday January 8, 2025 7:05 am PST by
Despite being released over two years ago, Apple's AirPods Pro 2 continue to dominate the wireless earbud market. However, with the AirPods Pro 3 expected to launch sometime in 2025, anyone thinking of buying Apple's premium earbuds may be wondering if the next generation is worth holding out for. Apart from their audio and noise-canceling performance, which are generally regarded as...
Apple Card iPhone 16 Pro Feature

Three Companies Are Now in the Running to Take Over the Apple Card

Thursday January 16, 2025 8:18 am PST by
Apple is in talks with Barclays and Synchrony about becoming its new financial partner for the Apple Card, according to Reuters sources. The report today added that Apple has also been holding discussions with Chase Bank owner JPMorgan since last year, so there are at least three potential companies in the running to take over the Apple Card from current partner Goldman Sachs. Goldman...

Top Rated Comments

alex00100 Avatar
48 months ago
I can agree that apple has the right to its cut on payments done through App Store, but apple not allowing Spotify to direct people to its website seems shady
Score: 62 Votes (Like | Disagree)
omenatarhuri Avatar
48 months ago
These are rather problematic, not just Music, but also the other categories where Apple directly competes with others in the App Store, like Fitness and Video Streaming.

It's a difficult position to compete from if you have to give 30% revenue to your competitor to begin with.
Score: 62 Votes (Like | Disagree)
Macintosh IIvx Avatar
48 months ago
This is the same guy who enthusiastically spearheaded Microsoft's monopolistic software patent extortion scheme against open source software. And now he is worried about monopolist worms? He was the worm in Microsoft with their extortion scheme against open source. Why should anyone pay attention to what he says?
Score: 49 Votes (Like | Disagree)
icanhazmac Avatar
48 months ago

I can agree that apple has the right to its cut on payments done through App Store, but apple not allowing Spotify to direct people to its website seems shady
Again, should Best Buy allow free items to exist on their shelves, advertised by them, traffic created by them, etc. with a label on the item that says pay for activation at www.websitex.com? ('http://www.websitex.com?')

Even if its not free, if the item has a price tag of $19.99 but a sticker on it says "or pay for me at www.websitex.com (http://www.websitex.com) and pay only $14.99" no retailer on the planet would allow that.
Score: 49 Votes (Like | Disagree)
nickawhite Avatar
48 months ago
So the company with 158 million subscribers is being "hobbled" by the company with 72 million subscribers? ?
Score: 41 Votes (Like | Disagree)
djcerla Avatar
48 months ago
They should thank Apple and the App Store every morning before the coffee.
Score: 39 Votes (Like | Disagree)