It is common knowledge and practice that digital storefronts take a cut from sales made through its platform. For example, apps sold through Apple’s App Store are subject to a 30% cut which goes to Apple. This also applies to in-app purchases. However, while it might be common practice, not everyone is necessarily happy about it.
So much so that over in the EU, Apple has been charged by the European Commission for antitrust violations over the cut it takes from the App Store. This seems to be more or less a direct response to Spotify’s complaint where according to the Commission, “it distorted competition in the music streaming market as it abused its dominant position for the distribution of music streaming apps through its App Store.”
The regulatory body claims that Apple is “depriving” users of cheaper streaming choices and also forbidding developers from informing customers of alternative subscription options. A good example would be Spotify, where in the App Store, the company is charging customers $12.99 a month for Spotify Premium.
However, the company is charging $9.99 through its website if you subscribe directly from them, with the difference in price being due to Apple’s 30% cut. This is versus Apple Music, which the company charges $9.99, making it a more attractive option by comparison.
According to Reuters, if the case is pursued, Apple could potentially face a fine of up to 10% of the company’s global turnover, which is said to be valued at around $27 billion.
Filed in . Read more about Apps, iOS and Legal. Source: arstechnica