Apple: Spotify wouldn't be where it is today without us

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Customers walk past an Apple logo inside of an Apple store at Grand Central Station in NY, U.S., August 1, 2018.

The Cupertino, California tech giant responded to Spotify's Wednesday assertion that it uses its power over the App Store to unfairly limit rivals to Apple Music, its music streaming service, with a statement of its own on Thursday.

The iPhone maker said the App Store contributed to Spotify becoming the business it is today, a public company that generates over a billion dollars of revenue per quarter, according to a statement on Friday. Apple says that even apart from the App Store, Spotify is paying lesser and lesser contributions to artists, musicians and songwriters and even taking them to the court.

The iPhone maker added that the App Store has generated $120 billion United States dollars for developers while offering users a secure platform and that Spotify is seeking to sidestep the rules that every other app follows.

Apple said it felt obligated to reply when Spotify "wraps its financial motivations in misleading rhetoric about who we are, what we've built and what we do to support independent developers, musicians, songwriters and creators".

In its response to Spotify's complaints, Apple said it doesn't charge for distributing free apps and only takes the 30 percent from paid subscriptions on its platform.

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However, Apple said Spotify left out the fact that the revenue share after the first year of annual subscription drops to 15 percent. In the end, Spotify said that it wants all third-party apps to be following the same rules, asking why things like Uber rides aren't subject to the "Apple tax" but Spotify subscriptions are. The company also points out that Spotify's Watch app is now the number one app in the Watch Music category.

Spotify's claims about fees also got a rebuttal from Apple.

What do you think about this battle between Spotify and Apple?

Spotify sued music creators after a decision by the US Copyright Royalty Board required Spotify to increase its royalty payments.

"The majority of customers use their free, ad-supported product, which makes no contribution to the App Store", Apple said. We've approved and distributed almost 200 app updates on Spotify's behalf, resulting in over 300 million downloaded copies of the Spotify app.

Despite the fiery response, Apple said it wants to continue creating new opportunities for companies, like Spotify, to use its platform to "grow the next big app" idea. It added that Spotify is "deeply integrated" into Carplay, and that its developers can access the same tools as anyone else. "We think that's wrong". "A significant portion of Spotify's customers come through partnerships with mobile carriers". And it's not just the App Store that they're trying to squeeze - it's also artists, musicians and songwriters. It also criticizes Spotify for wanting to take advantage of the reach that the App Store makes possible, without wanting to give anything back. A similar antitrust case about potential overreach in Apple's walled garden-Apple v.

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