“Exchange of courtesies”: what is the essence of the conflict between the two most famous streaming companies
In mid-March, Spotify appealed to the European Commission with a complaint against Apple. This event became the apogee of the "power struggle" that the two companies have been leading for a long time.
Photo c_ambler / CC BY-SA
According to the streaming service, the corporation discriminates the applications of other companies to promote Apple Music. The full text of the complaint filed in the EU is not available, but Spotify launched a website called Time to Play Fair - “Time to play fair” - which indicated the main complaints about the apple corporation. Here are some of them:
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Discriminatory tax. App Store application developers pay a commission on every purchase that users make inside the service (the so-called In-App Purchases). At the same time, not all pay. For example, the rule does not apply to Uber and Deliveroo, but concerns Spotify and some other streaming services.
The founder of Spotify explained in an open letter that premium accounts are also subject to collection. As a result, the company is forced to increase their value.
Barriers to communication. According to the rules of the App Store, companies may opt out of Apple’s payment infrastructure. But then they lose the opportunity to send their users notifications of promotions and special offers.
UX damage. Spotify customers cannot purchase a premium subscription in-app. To complete the purchase, they have to arrange it in the browser.
Difficulties when updating applications. If the App Store decides that an update for a third-party application does not satisfy any requirements, it is rejected. As a result, users receive less important innovations.
Closed ecosystem. By Apple’s decision, Spotify cannot be launched on HomePod speakers. In addition, Siri services are not integrated into Spotify - again by the decision of the apple giant.
In response to allegations, Apple posted a response. In it, representatives of the IT giant refuted the statements of Spotify. In particular, they said that the App Store had never specifically prevented updates to the streaming platform, and work on integrating Spotify with Siri was actively under way.
Conflict of companies caused a heated discussion in social networks among application developers. Some of them sided with Spotify. In their opinion, a number of App Store rules really impede healthy competition. Others thought that the truth was on Apple’s side, since the company provides its infrastructure to developers and is entitled to receive money for it.
The conflict between the two companies has lasted since 2011. That's when Apple introduced a fee of 30% for the sale of subscriptions within applications. A number of streaming services immediately opposed innovation. Rhapsody threatened to quit the App Store, and Spotify refused In-App Purchases. But representatives of the latter say that Apple has forced the company to integrate into the payment infrastructure using various methods. In 2014, Spotify surrendered, and they had to increase the cost of a subscription for iOS users.
In the same year, Apple acquired audio equipment maker Beats Electronics and Beats Music, and a year later the corporation launched its own streaming service. According to some reports , before its release, the IT giant called on major music labels to "put pressure" on other streaming services. This case even caught the attention of the Department of Justice and the US Federal Trade Commission.
Photo Fofarama / CC BY
The conflict continued a year later. In May 2016, Spotify once again abandoned In-App Purchases. In response, the App Store did not accept the new version of the Spotify application. In 2017, Spotify, Deezer and a number of other companies sent the first complaint to the EU antitrust authority on platforms that “abuse their privileged position”. The complaint did not mention the name of the IT giant, but the context indicated that we were talking about it.
In the autumn of the same year, Spotify and Deezer wrote a letter to Jean-Claude Juncker, President of the European Commission (EU). In it, they spoke about the difficulties that large international corporations create to smaller organizations. On Juncker's answer to date, nothing is known.
In November 2018, the US Supreme Court heard a lawsuit filed in a lawsuit filed by a group of iPhone users back in 2011. It says that Apple violated federal antitrust laws with the introduction of 30 percent developer fees. However, the case is far from completion and it can be returned to the first instance for consideration.
This year, Kaspersky Lab sent a complaint to Apple to the Federal Anti-Monopoly Service of Russia. App Store demanded to limit the functionality of the application for parental control. Experts have linked this requirement with the fact that last year Apple had a similar application.
It is not yet known how the current conflict between Spotify and Apple will end. The European Commission will stop its investigation if the IT giant proves that it has the right to establish different conditions for streaming services. But experts suggest that the case will be delayed. A similar situation occurred with Novell's complaint against Microsoft: the lawsuit was filed in 2004, and the case was closed only in 2012.
Additional reading from our corporate blog and Telegram channel:
Streaming giant launched in India and attracted a million users in a week
What happens in the streaming audio market
A selection of online stores with hi-res music
What is it: the Russian market of streaming services
Warner Music has signed a contract with a label on the music of a computer algorithm
The first techno album, which was created on the Sega Mega Drive and will be sold on cartridges
By the way, from April 11 to April 14, 2019 Audiomania will take part in the HI-FI & HIGH END SHOW 2019 exhibition. We will show the full line of the Roksan brand, the Pro-Ject turntable with Beatles 'White Album' (for the first time in Russia), an unusual stereo system based on two REL T9i sabs, the new Monitor Audio Gold series (as well as the sawed Monitor Audio column, plus other interesting things ). All the best will be on the last, sixth floor. Our rooms are 601, 609, 617 and 618. This is the Aquarium Hotel (CROCUS EXPO Pavilion 3) .
Photo c_ambler / CC BY-SA
A string of reproaches
According to the streaming service, the corporation discriminates the applications of other companies to promote Apple Music. The full text of the complaint filed in the EU is not available, but Spotify launched a website called Time to Play Fair - “Time to play fair” - which indicated the main complaints about the apple corporation. Here are some of them:
')
Discriminatory tax. App Store application developers pay a commission on every purchase that users make inside the service (the so-called In-App Purchases). At the same time, not all pay. For example, the rule does not apply to Uber and Deliveroo, but concerns Spotify and some other streaming services.
The founder of Spotify explained in an open letter that premium accounts are also subject to collection. As a result, the company is forced to increase their value.
Barriers to communication. According to the rules of the App Store, companies may opt out of Apple’s payment infrastructure. But then they lose the opportunity to send their users notifications of promotions and special offers.
UX damage. Spotify customers cannot purchase a premium subscription in-app. To complete the purchase, they have to arrange it in the browser.
Difficulties when updating applications. If the App Store decides that an update for a third-party application does not satisfy any requirements, it is rejected. As a result, users receive less important innovations.
Closed ecosystem. By Apple’s decision, Spotify cannot be launched on HomePod speakers. In addition, Siri services are not integrated into Spotify - again by the decision of the apple giant.
In response to allegations, Apple posted a response. In it, representatives of the IT giant refuted the statements of Spotify. In particular, they said that the App Store had never specifically prevented updates to the streaming platform, and work on integrating Spotify with Siri was actively under way.
Conflict of companies caused a heated discussion in social networks among application developers. Some of them sided with Spotify. In their opinion, a number of App Store rules really impede healthy competition. Others thought that the truth was on Apple’s side, since the company provides its infrastructure to developers and is entitled to receive money for it.
The conflict history of Apple and Spotify
The conflict between the two companies has lasted since 2011. That's when Apple introduced a fee of 30% for the sale of subscriptions within applications. A number of streaming services immediately opposed innovation. Rhapsody threatened to quit the App Store, and Spotify refused In-App Purchases. But representatives of the latter say that Apple has forced the company to integrate into the payment infrastructure using various methods. In 2014, Spotify surrendered, and they had to increase the cost of a subscription for iOS users.
In the same year, Apple acquired audio equipment maker Beats Electronics and Beats Music, and a year later the corporation launched its own streaming service. According to some reports , before its release, the IT giant called on major music labels to "put pressure" on other streaming services. This case even caught the attention of the Department of Justice and the US Federal Trade Commission.
Photo Fofarama / CC BY
The conflict continued a year later. In May 2016, Spotify once again abandoned In-App Purchases. In response, the App Store did not accept the new version of the Spotify application. In 2017, Spotify, Deezer and a number of other companies sent the first complaint to the EU antitrust authority on platforms that “abuse their privileged position”. The complaint did not mention the name of the IT giant, but the context indicated that we were talking about it.
In the autumn of the same year, Spotify and Deezer wrote a letter to Jean-Claude Juncker, President of the European Commission (EU). In it, they spoke about the difficulties that large international corporations create to smaller organizations. On Juncker's answer to date, nothing is known.
Other cases
In November 2018, the US Supreme Court heard a lawsuit filed in a lawsuit filed by a group of iPhone users back in 2011. It says that Apple violated federal antitrust laws with the introduction of 30 percent developer fees. However, the case is far from completion and it can be returned to the first instance for consideration.
This year, Kaspersky Lab sent a complaint to Apple to the Federal Anti-Monopoly Service of Russia. App Store demanded to limit the functionality of the application for parental control. Experts have linked this requirement with the fact that last year Apple had a similar application.
It is not yet known how the current conflict between Spotify and Apple will end. The European Commission will stop its investigation if the IT giant proves that it has the right to establish different conditions for streaming services. But experts suggest that the case will be delayed. A similar situation occurred with Novell's complaint against Microsoft: the lawsuit was filed in 2004, and the case was closed only in 2012.
Additional reading from our corporate blog and Telegram channel:
Streaming giant launched in India and attracted a million users in a week What happens in the streaming audio market A selection of online stores with hi-res music What is it: the Russian market of streaming services Warner Music has signed a contract with a label on the music of a computer algorithm The first techno album, which was created on the Sega Mega Drive and will be sold on cartridgesBy the way, from April 11 to April 14, 2019 Audiomania will take part in the HI-FI & HIGH END SHOW 2019 exhibition. We will show the full line of the Roksan brand, the Pro-Ject turntable with Beatles 'White Album' (for the first time in Russia), an unusual stereo system based on two REL T9i sabs, the new Monitor Audio Gold series (as well as the sawed Monitor Audio column, plus other interesting things ). All the best will be on the last, sixth floor. Our rooms are 601, 609, 617 and 618. This is the Aquarium Hotel (CROCUS EXPO Pavilion 3) .
Source: https://habr.com/ru/post/446560/
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