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Congress Reportedly Asks Spotify for Information on Apple's Alleged Anticompetitive Behavior

The U.S. Congress has requested information from Spotify related to its anticompetitive allegations against Apple, according to Reuters (https://www.reuters.com/article/us-tech-antitrust-apple-exclusive/exclusive-antitrust-probers-in-congress-ask-spotify-to-detail-alleged-apple-abuses-sources-idUSKBN1WJ1Y3).





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From the report:

The U.S. House of Representatives Judiciary Committee reached out to the music streaming service with broad requests for information, according to one source, who added the request to the company was narrowed in follow up telephone calls.

In March, Spotify announced it filed an antitrust complaint against Apple (https://www.macrumors.com/2019/03/13/spotify-files-complaint-vs-apple-in-europe/) with the European Commission over unfair App Store practices. Spotify took particular issue with Apple charging a 30 percent "tax" on only certain App Store purchases, calling it "discriminatory."





Apple only charges a commission on in-app purchases tied to digital goods, so apps providing real goods and services like Uber are exempt.





Apple also forbids Spotify and other developers from alerting users that they can sign up for a subscription or complete a purchase outside of its iOS app, and disallows Spotify from advertising deals to its customers in the app or by email, as these practices would circumvent Apple's in-app purchase system.





Apple labeled Spotify's complaint as "misleading rhetoric (https://www.macrumors.com/2019/03/15/apple-responds-to-spotify/)" and claimed that "Spotify wants all the benefits of a free app without being free," later adding that Spotify pays Apple a 15 percent commission for only about 0.5 percent of its paying subscribers, as part of its official response to the complaint.





Apple has faced increasing scrutiny as of late over the way it runs its App Store. In response, Apple said the App Store "welcomes competition (https://www.macrumors.com/2019/05/29/apple-says-app-store-welcomes-competition/)," noting that it was created to be "a safe and trusted place for customers to discover and download apps" and "a great business opportunity for all developers."

<div class="linkback">Tags: App Store (https://www.macrumors.com/roundup/app-store/), Spotify (https://www.macrumors.com/roundup/spotify/)</div>
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Source: Congress Reportedly Asks Spotify for Information on Apple's Alleged Anticompetitive Behavior (https://www.macrumors.com/2019/10/04/congress-asks-spotify-to-explain-apple-abuses/)