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Since you edited this after I responded:

Uber will never be profitable if they pay a 30% commission to Apple (leaving aside the problems with Uber's business model more generally) and Microsoft could definitely afford paying Apple's 30% commission, but they don't So why do they have an exception?
The exception isn't about profitability.

As I've said, trying to justify the exception categories isn't going to work long term the more regulatory scrutiny they invite.


rider share app isn't sustainable if a fee is applied. therefore exception is made to make native apps sustainable for those categories. the exception is about sustainability to provide a better user experience.

are you talking about some deal apple has with Microsoft to bring office to iPad? I don't recall them disclosing any details so I don't know where you're getting the idea they don't pay Apple anything.
 
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I find it hard to believe that a "large part of [Spotify's] success is due to the App Store."

The rise of the smartphone has helped them a lot for sure, but I think Apple here massively overstates its own importance. That is not to say that Apple doesn't provide lots of support to make sure there are good apps and services on its platform, but I find it frustrating how Apple now suggests that this isn't for anything other than pure self interest. Apps like Spotify and many many others have made the iPhone the platform that it is. It's a symbiotic relationship and Apple isn't the benign benefactor it makes itself out to be.

I wouldn't have a massive issue with their anti-steering provisions if there were good alternatives as there are on the Mac. They can gatekeep in their store as much as they want as long as I can just download from the developer directly or from a trusted alternative store (like Steam).

But otherwise I'm happy that there is more scrutiny of Apple's practices, and for the record not just Apple alone.
I wonder how much engineering effort went into fixing Spotify code bugs, versus identifying iOS bugs (or API misuse due to Apple's crappy documentation), and how much help Apple engineers provided to Spotify for their Windows, Android, and web apps? Because that's sure what Apple is making it sound like here!
 
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Imagine you own a music store in a mall, the mall is the only place in the town in which stores are allowed. You pay your rent to the mall owner. But the mall owner forbids you from advertising a mail order business inside the store. And than the mall owner puts a music store directly next to yours which doesn't have to pay rent and can advertise their mail order business.
your comparison breaks down at “you pay rent”. Spotify pays $0 to Apple (except maybe $99 for the developer account).
 
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As Apple already pointed out in their response to the EU, what Spotify did is end the ability to subscribe inside the app. So customers went to Spotify's web site and paid for the subscription there. That's how 99% of Spotify's iOS subscriptions were not subject to a commission.

In other words, not communicating inside the app was not a barrier for getting customers to go to the web site. People who use smartphones know that they can access the internet and go to business web sites.

That's the wrong inference, because obviously you will primarily find users who managed to sign up as paying customers in the data since Spotify removed the ability to take out a subscription directly, as you say. That means anyone who wanted to subscribe, but couldn't, just wouldn't show up in the data at all.

I don't know what analysis Spotify, Apple or the European Commission, for that matter, have done to quantify the economic harm. Maybe the decision was taken on principle alone, but Spotify seems to think that not being able to point consumers to their website disadvantages them vs Apple Music, which not only comes preinstalled but also lets consumers subscribe directly.

Whether this is actually the case we can all just speculate. Maybe it really doesn't matter considering Spotify's market share, but equally maybe Apple Music is only as successful as it is because it's so easy and straightforward to sign up for. Do we know how well Apple Music does on Android? This could give us an indication.
 
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Sort of. The iOS app store isn't the "only place in town", it's more like one of only two places in town (iOS and Android) as far as app sales/access options.
No, Android is another town ~100 miles away with its own mall and problems.
 
I wonder how much engineering effort went into fixing Spotify code bugs, versus identifying iOS bugs (or API misuse due to Apple's crappy documentation), and how much help Apple engineers provided to Spotify for their Windows, Android, and web apps? Because that's sure what Apple is making it sound like here!
Spotify launched its service before the smartphone era. How big would their business be if they had limited their app to desktop/laptop operating systems and not branched out to smartphones?
 
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Not on the outside, no, but again we see how the analogy breaks down.

Costco would have to be giving away the Post Cereal and somehow you pay for it later at Sam's Club.

If this analogy is to work there is no way for Costco to get paid, the only restriction they are putting on Post is that they can't tell you where you are supposed to pay for it.
It could be Costco has higher margins than Sam’s club and Sam’s club sells it cheaper. But post can’t print that on the cereal box due to prior agreement.
 
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Hopefully the EU goes after Google and Spotify next for being dominant behemoths in their markets. And then Samsung.

Let's face it, the EU wants to eliminate large companies and get rich by penalizing them.

Spotify has the big market share, time to make them pay $3B to the EU. Equivalence based on simple percentages.

Time to get a new email address since Gmail won't be around much longer. Maybe AOL. They are small. /s
 
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EU is doing it by market cap though. They're not actually prohibiting anti-steering throughout the market. So the EU apparently has a market based reason for keeping anti-steering practices available for companies below the cap.

What are the thresholds?
 
It's a business model sure, that doesn't make it either logical, ethical, or (in this case) legally defensible.
If you didn’t know, Spotify did lose its case against Apple in the US. So it is legally defensible. Also the EU commission can still be challenged in EU courts. Let’s see how it goes.
 
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What? re-read what you typed.

rider share app isn't sustainable if a fee is applied. therefore exception is made to make native apps sustainable for those categories. the exception is about sustainability to provide a better user experience.

are you talking about some deal apple has with Microsoft to bring office to iPad? I don't recall them disclosing any details so I don't know where you're getting the idea they don't pay Apple anything.
I am talking about the fact that Microsoft doesn't let you subscribe in the App, yet they could afford the 30% fee, therefore Apple doesn't just make exceptions for categories that wouldn't be sustainable without the exception.
 
How inconvenient could it be if 99% of their iOS subscribers used their web site to pay for their subscriptions?
What percentage would use an in-app link if one existed? A question we have no answer for.
Again, just because something works doesn't mean it isn't inconvenient.
 
That's the wrong inference, because obviously you will primarily find users who managed to sign up as paying customers in the data since Spotify removed the ability to take out a subscription directly, as you say. That means anyone who wanted to subscribe, but couldn't, just wouldn't show up in the data at all.
How likely is it that a smartphone user who didn't see a way to sign up via the app would just give up and never sign up via the internet? It's not the 1990s. The internet and web sites are well known to consumers. The Netflix app and the Amazon Kindle app were also successful in using the same approach.
 
How likely is it that a smartphone user who didn't see a way to sign up via the app would just give up and never sign up via the internet? It's not the 1990s. The internet and web sites are well known to consumers. The Netflix app and the Amazon Kindle app were also successful in using the same approach.
Which would also be better apps if I could buy books and a Netflix subscription from within the app...

Why do you want to defend this rule?

This rule doesn't make Apple money (because the Apps would rather abide by it (and sue Apple in the EU) than pay Apple)
This rule doesn't make consumers safer (they subscribe or purchase books on the web anyway)

This rule only makes these app's less convenient - it doesn't help Apple, users, or developers.
 
How likely is it that a smartphone user who didn't see a way to sign up via the app would just give up and never sign up via the internet? It's not the 1990s. The internet and web sites are well known to consumers. The Netflix app and the Amazon Kindle app were also successful in using the same approach.

I don't have any data to tell one way or another, but Apple certainly seems to think that it works in their favour in some shape or form.

If it really was so inconsequential, why not let companies point to their websites without allowing alternative in-app payment options?
 
What percentage would use an in-app link if one existed? A question we have no answer for.
Again, just because something works doesn't mean it isn't inconvenient.
Your answer will be whether or not Spotify reintroduces in-app payments once the link is allowed via DMA. Paying in-app would be more convenient but it's much more likely that Spotify will continue to prevent in-app payments while including the link/communications.
 
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Your answer will be whether or not Spotify reintroduces in-app payments once the link is allowed via DMA. Paying in-app would be more convenient but it's much more likely that Spotify will continue to prevent in-app payments while including the link/communications.
They don't just have to wait for the DMA, the order handed down today also requires Apple to allow Spotify to link from within their app.
 
No, Android is another town ~100 miles away with its own mall and problems.

I just think it's too narrow to suggest that Apple's App Store is the only place in town, especially now that alternative iOS app stores and sideloading will be available in the EU. That doesn't mean they shouldn't still face antitrust fines/litigation when they engage in anticompetitive behavior.

I think Spotify (and others) should be able to "advertise" alternative subscription options in their App Store app similar to how companies advertise alternatives on/in their product packaging sold at retail stores.
 
How likely is it that a smartphone user who didn't see a way to sign up via the app would just give up and never sign up via the internet? It's not the 1990s. The internet and web sites are well known to consumers. The Netflix app and the Amazon Kindle app were also successful in using the same approach.
You would be surprised how nonchalant people can be. Some people don’t go to stores that don’t use apple pay for example. Some people don’t buy something online if they have to register an account, give credit card info, phone number etc. People are very picky, so in a large market where people couldn’t be bothered to to go to a website Spotify did lose customers.
 
They don't just have to wait for the DMA, the order handed down today also requires Apple to allow Spotify to link from within their app.
Okay, but if Spotify doesn't reintroduce in-app payments then you can't make an argument about lower convenience = harm to consumers. In-app payments would be more convenient and Spotify is intentionally eliminating that option for monetary reasons of their own.
 
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