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Spotify complains about unfair tax, Apple denies allegations

Spotify filed a complaint against Apple over the so-called “Apple tax” and claims of restrictive guidelines concerning the App Store this May. Since then, Apple has responded with the launch of a website that takes purpose on the anti-trust, anti-competitive claims towards it, and most lately, a deep dive into how the process of app approvals works, by the use of a CNBC profile. Now, Apple has responded to the EC criticism with its own filing that claims Spotify merely is paying this “Apple tax” on lower than one p.c of its paid subscribers.

This information was first reported by Music Business Worldwide (MBW) and German website Der Spiegel.

Notably, Apple’s filing says that Spotify solely pays a 15% “app tax” (income share) on just 0.5% of its 100 million premium subscribers, or around 680,000 clients. This income share solely impacts these customers Spotify acquired throughout the 2014-2016 time-frame who signed up for the subscription via an in-app purchase. Afterward, Spotify switched off the option to enroll within the app.

That is in distinction to the declare made by Spotify CEO Daniel Ek on the corporate’s weblog in March, the place he wrote that “Apple requires that Spotify and different digital services pay a 30% tax on purchases made by way of Apple’s fee system.”

As well as, MBW reviews, citing an unnamed supply, that Spotify pays even lower than the usual 15% for these prospects who signed up utilizing in-app buy because of label reductions. The supply advised the outlet that Spotify needs to “pay nothing.”

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Paul Carrizales

Paul is dealing with the science and technology area. He is the senior content writer of this column for 3 years. The most exceptional thing that mainly defines his character is the way he can work with a team. His articles are always very much unique and have an essence of their own. He prefers searching the topics of his articles manually, and hence it improves the quality of the content.

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