The antitrust complaint Spotify filed against Apple has merit and could pose a financial risk to Apple, says a note from KeyBanc Capital Markets.
Apple's revenue from services like the App Store and Apple Music are more important for the company than ever as iPhone sales have slowed.
Apple takes a 30% cut of revenue from most App Store transactions, and even takes a slice from your monthly Spotify Premium fee if you subscribe via the iOS app. Ek says this makes it difficult to keep Spotify Premium priced competitively with Apple Music. Apple also requires app makers to use the App Store for all transactions, and limits the ability of developers to point users at outside payment portals.
"We believe the most significant financial risk to Apple would come from a forced requirement to allow first party and other third party payment processing from within apps," the note read."This would create competition for subscription and in-app payments that would likely drive the current 30% rate Apple collects down substantially."
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Spotify's App Store complaint carries 'meaningful risk' for Apple, KeyBanc saysApple prevents companies from linking to alternative payment methods that would circumvent the 30-percent cut.
Read more »
Here's why Spotify is declaring war on Apple and not GoogleThe problem boils down to the fact that Apple won't allow Spotify to advertise that subscriptions are cheaper through its website, not the app.
Read more »
Spotify wants EU antitrust officials to investigate AppleThe music streaming service is asking European antitrust regulators to intervene in a dispute after failing to settle its differences with Apple.
Read more »
Spotify CEO blasts Apple's 'unfair' policies that forces a 'tax' on rival subscription servicesMusic streaming giant Spotify filed a complaint against Apple with the European Commission's antitrust regulators.
Read more »
Spotify files EU antitrust complaint against AppleSpotify has filed a complaint with EU antitrust regulators against Apple, saying...
Read more »
Spotify accuses Apple of breaching EU antitrust rulesMusic streaming giant Spotify filed a complaint against Apple with the European Commission's antitrust regulators, saying Apple Music has an 'unfair advantage' over rivals.
Read more »
Spotify claims Apple harms consumers, stifles rivals: files complaint with EU regulatorsSpotify CEO claims Apple “introduced rules to the App Store that purposely limit choice and stifle innovation at the expense of the user experience
Read more »
President Trump calls Apple CEO Tim Cook 'Tim Apple' and social media responds to the flubIt's not the first time President Trump called a CEO the wrong name and social media users didn't waste any time in mocking Trump.
Read more »