The Spotify software logo as seen on an Apple smartphone. (Photo : Reuters)
Spotify accused Apple of causing grave damage to their business when Apple rejected their request for an app update, in which Apple has responded that these allegations are nothing but half-truths.
According to Spotify lawyer Horacio Gutierrez, the process in which Apple's App Store works by rejecting Spotify's app-update is being deliberately used to cause harm among competitive developers, as posted by Mac Rumors. He mentioned that their motive was to diminish Spotify's competitive position on iOS.
Gutierrez's statement was met with a stern response from Apple's legal head Bruce Sewell through a letter published in Buzzfeed. Sewell explained that the reason why Spotify's app-update was rejected was because they were aiming to bypass Apple's in-app purchase rules.
By creating an account sign-up feature directly on their app and website, Spotify would therefore eliminate the option for customers to purchase subscriptions through Apple. The new version of their app would have a sign-up feature that requests for the customer's e-mail address, which will be used to invite other customers as well to sign up for a subscription on the web.
Apple receives a 30 percent commission from app store subscriptions. Through this process, Spotify's goal was to eliminate their in-app purchase cut, which is a violation of their guidelines.
Moreover, he was disappointed that Spotify had resorted to public shaming. Since they were asking for exemptions from the established rules of the App Store for all developers, it would give them a massive advantage over every other app developer in the market.
"Ever since they joined in 2009, Spotify has hugely reaped rewards from their association with Apple's App Store. We have provided them with over 160 million downloads of their app, which has resulted in more than a hundred million dollars in incremental revenue," according to Sewell.
Furthermore, Sewell said that it is unfair and unreasonable on Spotify's part that they are implicitly trying to bend the rules. The App Store rules have been established for all app developers, even before Apple Music was introduced.
Spotify was notified about the guideline violation, in which it dictates that apps are free from using Apple's billing system, but Apple does not allow them to offer alternate purchase options other than the App Store.
