And Apple released a letter that sounds petty and greedy.
this post was submitted on 04 Mar 2024
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Apple’s answer is fair. IF THERE WAS A WAY FOR SPOTIFY TO BE DOWNLOADED WITHOUT THE APP STORE
Either that or just don't directly compete with them. Without Apple Music no one would have complained about it.
But you can't establish a monopoly and leverage it to charge your direct competitors a high fee.
To be fair, Apple's position in the digital music market predates all of the streaming apps. They may not have gone all in on Apple Music until after Spotify started taking off, but when it came to music, Apple devices were synonymous with them for a very long time.
The problem is they created a marketplace with the App Store, allowed competition in, and for way too long we have all kind of collectively accepted the fact that because it's their platform there allowed to have special privileges over everyone else on it.
With the EU is doing is recognizing that these devices are not niche, they're not game consoles, they are devices that every single person has, and this is a marketplace that every person is active in. It is far too large for Apple to be allowed to have that kind of privilege.
It has nothing to do with what's fair to Apple because regulating capitalism properly should not be about fairness to all parties equally. It should be about balancing the scales and leveling the playing field.
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Despite that success, and the App Store’s role in making it possible, Spotify pays Apple nothing.
That's because Spotify doesn't owe you anything. If I release a piece of software for Apple, Android, Linux, Windows, etc., I don't owe these OSes anything for that. Apple makes plenty of money selling hardware, that's good enough for them.
These delusional bastards really need a few slaps around their heads to get this concept to sink in.
I can see an argument for owing something for hosting the app in the App Store, but certainly not 30% of what every user pays or whatever ridiculous amount Apple charges. Price it like hosting a file on S3, perhaps.
Perhaps! But only if they allowed third party app stores. Because as it stands right now, they're basically inventing a cost that they pass on to developers, and then rewarding themselves handsomely for the cost that they would have never needed to pay if they allowed others to compete in this area. It's still a tactic they could not get away with if they were not a monopoly.
Hell nah. They cannot be the sole gatekeepers, alternative app stores that are outside of Apple's control need to exist.
You already pay to host your app in the app store.
And the thing is, that if the app is so popular, it gets installed a lot. Which means it only improves their devices.
Apple and app developers are a symbiotic relationship. Both need each other in order to function. Yet Apple is consistently taking a bigger piece than they should.
Damn that's petty. They're like a 5 year old child that got their toy taken from them
They're used to being treated like God's special little tech company here in the states, so of course they're going to throw a fucking tantrum when faced with a regulatory body that actually treats them as they should be treated.
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They're getting punished for keeping the users in a golden cage, and they are mad that they might have to give some of that power away. You can tell by the fact that not a single paragraph actually addresses the reason for the fine. The EU doesn't give a damn how many times you flew engineers to Stockholm, this is about the conditions in which iOS operates that hurt both developers and users. But we already knew that Apple doesn't give a fly about users, it's money and nothing else for them. “Spotify doesn't pay Apple” oh cry me a river.
Despite that success, and the App Store’s role in making it possible, Spotify pays Apple nothing. That’s because Spotify — like many developers on the App Store — made a choice. Instead of selling subscriptions in their app, they sell them on their website. And Apple doesn’t collect a commission on those purchases.
Oh noooooo, Apple is only making most of the money, instead of all the money 😭
Eat shit and die, Apple
It’s as if Ford wanted a dividend of all contractors revenue that use a F150.
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And it’s so utterly ignorant of WHY the fine was issued. This isn’t about a competitors market position, it’s about Apple using its own dominant market position to push its own service. Using a monopoly to create another monopoly is anti-competitive.
I am wondering if it's really true, that Spotify pays nothing to Apple. If my information is correct every app provider needs to have at least one active Apple Developer subscription (in the case of Spotify there is probably far more than just one account involved). If it is true that Spotify pays nothing to Apple the only possibility is that Apple invited them to bring their app to iOS and granted them free access.
I know 99 USD is not what Apple is after, but it seems dishonest to not disclose this.
They’re just bitter that Spotify is leading the market and not Apple Music and they crybaby because of that. They’ve been bullying Spotify from the beginning and there has been bad blood on both sides for years. Apple has not made it easy for Spotify, why would Spotify give them any more money? They could have worked together, allowing HomePod and Siri to control Spotify and other cross integrations then that would have maybe been a reason to share revenue. But that’s kinda like The Little Red Hen here.
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It reads like a child throwing a temper tantrum...
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Seeing horrible actors like apple getting fined gives me a nice hit of dopamine.
1.8 billion is around 2% of their last year's net income. At least it's a bit better than the insignificant wristslaps companies tend to get.
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Even though the Commission has fined the company concerned, damages may be awarded by national courts without being reduced on account of the Commission fine.
So if/after Apple's appeal is declined, Spotify - the driving force of this EU investigation - can sue Apple for damages with additional cost to Apple.
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For a middle class person, that’s equivalent of being sued for €1000, with a good chance of getting away with €100 even when losing. When will fines for big multinationals ever be adequate?
According to this, the fine includes a punitive damage:
Vestager said that the lump sum of €1.8 billion had been added as a deterrent since the basic amount of the fine, which she compared to a "parking ticket," would have been quite small.
The total fine of €1.84 billion amounts to 0.5% of Apple's worldwide turnover, according to Vestager.
Still not enough in my opinion, but hopefully if this sticks, future damage awards will be even higher. In any case, there will be a lot more fines and regulations coming down on Apple into the future (thanks in large part to the DMA), so even though this is just a single instance, they will hopefully add up pretty significantly in the coming years.
$1.8B is quite a chunk, and the EU is not shy about levying further fines if the behaviour continues.
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While I do agree that the fine could be higher, this is not like a US regulatory lawsuit. In the EU, fines have to be paid immediately, and Apple can appeal if it wants and may receive some of the money it paid back. Apple doesn't get to drag it out, and there are no out of court settlements that usually get the fine amount down.
RIP El Risitas. 😭
So doesn’t Spotify pay them the 100 dollars a year to be a developer? So Apple says they get nothing for from Spotify for developing the platform and tools, but they’re outright lying. And if the 100 isn’t enough increase the price.
Apple just seems like a crying baby in this letter.
$100 top Apple is literally nothing. So are they technically lying? Yes. But in all actuality $100 means nothing to them.
There’s a LOT to complain about Apple, but this is just semantics.
It's very indicative of the culture though. That people pay hundreds of dollars a year just for the privilege of using their products is taken for granted.
In case anyone is wondering where the money is going: The EU budget. The EU doesn't really get to keep it though because membership fees will be lowered by that amount next year so the actual windfall goes to member state budgets.
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EU, I belive in you!
Apple have been getting so many giant fines that it makes me think the EU have really just found their own way of taxing them. Which I'm in favour of.
Good guy EU!
Nice to see a reasonably sized fine. In the US it would be like 5 million and they'd spend 10 times that fighting it in court and still not affect their profits for the month.
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Good.
Apple abusing its monopoly? Well I'd never!
Woah, eat shit Apple
Spotify should have handled their issues with the app store rules but just not making an IOS app. If the biggest music streaming service in the world didn't work with iPhones maybe Apple would have had to reconsider some things.
They can't just not have an app... They don't have that much leverage over other music streaming services
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