There have been many questions revolving around Apple’s monopoly over controlling the App Store. Arguably, Apple holds this as they say its what makes the iOS as secure as it is right now. Recently, Spotify has been fighting over the monopoly that Apple holds, and how it proves unfair for their business.
Spotify claims that Apple claims a 30% tax over transactions that occur through in-app purchases. This is true, and Spotify argues that due to this, they have a more difficult time competing with Apple as they aren’t able to match the Apple Music pricing with this tax.
Apple says they do this, as they give companies and consumers the benefit of a secure transaction. The rules may not be fair, but shouldn’t rules be fair to all companies? For example, Uber is allowed to accept payments in the app, through their own payment method, but Spotify isn’t. This is because Apple sees the chance to reduce the competition that Spotify has, by taking a share in their profits that go through iOS devices.
You can say that Apple is a company and that they need to do what it takes to survive. However, by completely controlling the App Store, they are able to enforce rules selectively for the companies that they decide.
Another thing that Apple does is that they do not allow Spotify to advertise their discounts in the App Store. Other companies are that aren’t a threat to Apple, are allowed to advertise freely. The biggest drawback that consumers can feel is the lack of Siri support in Spotify. Uber, Lyft, etc., are able to integrate Siri into their apps using SiriKit. Apple doesn’t allow Spotify to do so, as then the difference between Spotify and Apple Music will further reduce. This is also a cost to the consumer, as Spotify users will not be able to use their platform to the fullest potential, and will be slowly forced to turn towards Apple Music.
It is not healthy for a single company to hold a monopoly like this, especially at the cost of the consumer.
The rules may or may not be fair, but as the App Store is a common marketplace for apps that we consumers want to experience and enjoy, the rules should at the very least be the same to all that publish to the App Store. Apple should stop selectively imposing rules and restrictions that benefit themselves, and start to treat all apps equally.
To read why some think that Apple is being fair and Spotify’s claims aren’t valid, click here to read an editorial from an Appleosophy writer David Becker, with opposing views.
(Image Courtesy: iPhone Life)