The music streaming, is an ever-growing field that is gaining more and more ground. Technological companies have begun to show interest in this and it seems Brussels will be a competition for music streaming. Spotify Technology, which is a leader in music streaming, is now asking the European Union to explore the Apple, to reduce by 30% subscriptions received from App Store vendors.
While senior vice president of European antitrust, Margrethe Vestager, says it is too early to say whether an audit will be carried out, it is very likely. Spotify is not the only third-party developer application that disagrees with the financial management of the iPhone, and Apple has not done a good job of defending its practices. The case of the Swedish music streaming company is reinforced by the fact that Apple is one of its biggest competitors.
However, there are not many who will deal with Spotify's complaints. Music streaming is a dark and boring business, and big providers usually have the approach of "the winner takes it all," which has been the technology's sphere for years. This involves large amounts of money to monopolize the market, which is good news for consumers looking for cheap offers but less for distributors in the industry - in this case the musicians.
When Apple started to compete with Spotify 2015, starting its own music streaming service, it was sensible to start the problems. Apple has done many pioneering things like making iTunes download, the invention of iPod to play this music and persuading great artists like the Beatles to join. But when he decided to "get into the fields" of Spotify, he was far less innovative. The technology company targets the same market, using the same business model as Spotify, but it offers even more money to get more market share.
Being able to receive as much as 30% of your opponents' revenue from iPhone app payments is certainly helping Apple's argument that funds contribute to the maintenance of the technology platform is not terribly persuasive.
According to antitrust law, Apple has overtaken her by cutting its subscriptions. Nevertheless, many of these streaming companies resemble wannabe monopolies, where a single buyer is so powerful that he can impose terms with vendors.
Spotify's earnings, however, may be reduced due to the rights it has to pay to major record companies. We do not know, of course, exactly what is the amount that these services need to pay. Violinist Zoe Keating revealed to 2018 that Spotify had paid her the amount of $ 0.005 per stream. Apple Music and Jay-Z's Tidal pay some fraction of a minute longer, according to some in the industry. In a BBC interview, Keating complained that streaming is good only for top artists.
However, even if Spotify won this fight against Apple, she is not the same innocent. Excessive collection of user data forced its CEO to apologize after 2015's consumer reaction.