Spotify decries Apple's 'outrageous' 27% fee

Spotify also calls on British government to stop similar fees from being imposed in UK
An undated image displaying Spotify logo. — Unsplash
An undated image displaying Spotify logo. — Unsplash

Spotify lashed out at Apple for charging 27pc fee from iOS app developers for selling their products on platforms other than its own app store in the US.

The condemning remarks came after the iPhone maker announced on Wednesday that developers can place and sell their products anywhere only if they pay the decided levy.

The music streaming giant accused Apple of being relentless in protecting its profits while also calling on the British government to stop similar charges from being imposed in the UK.

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"We strongly urge UK lawmakers to pass the bill swiftly to prevent Apple from implementing similar fees, which will help create a more competitive and innovative tech industry for UK consumers and businesses."

According to BBC, Apple has imposed fees in the United States following a legal dispute with Epic Games, the Fortnite developer . 

While the court ruled in favor of Apple on several matters, it found that Apple violated a law by prohibiting app developers from informing users about alternative payment methods, such as bypassing Apple's own App Store payment system through links. 

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Apple imposes a 30% fee on major developers for using its payment system, while smaller developers pay around 15%, and 85% of developers are not charged any fee. In response to the court's decision, Apple has introduced new guidelines in the US that allow users to subscribe to services without using its system, but developers will be charged up to a 27% commission for doing so. 

The company stated in court documents that the commission fee is in compliance with the court ruling and emphasised that App Store developers benefit from Apple's services.

"All App Store developers — including those who place buttons or links with calls to action in their apps — benefit from (among other things) Apple's platform integrity," the filings stated.