There are many reasons why Apple is one of the largest and most profitable companies on the planet. They wield an incredible amount of power over other companies that sell apps. This is because they control the App Store. This is where people go to buy new apps for their various Apple devices. However, there are many companies and app developers that think Apple’s control over the App Store is unethical. Apple makes all the rules and if another company or app developer breaks them, they might have their apps removed from the App Store entirely. This will mean that the hundreds of millions of Apple users will not have access to these apps. Needless to say, that would be a huge hit to the bottom line of any company that has their apps removed from the App Store.
Spotify has taken action against Apple. Spotify believes that Apple is using anticompetitive practices in Europe to crush companies that offer the same services as Apple. Spotify is one of Apple’s biggest competitors when it comes to streaming music. This is why Spotify has taken the big step of filing an official complaint with regulators in Europe. The complaint states that Spotify believes Apple is utilizing their control over the App Store to get an unfair and unethical advantage over their competitors. The timing of this complaint is very interesting. Senator Elizabeth Warren recently proposed separating the App Store from Apple in a speech for her presidential campaign. There has been a movement towards reducing the power that large tech companies have. Senator Warren believes that companies like Apple should not own a marketplace that they also participate in.
Another complaint that Spotify and other companies have with Apple is the fact that they charge a massive 30 percent fee on everything that they sell in the App Store. Apple makes massive amounts of money on the sales of apps that they did to even make. Apple also has advantages that are built into the App Store. For example, Apple will always place ads for their apps at the top of the search results in the app store. These ads will be the first thing that people will see. Companies like Spotify claim that their apps are buried at the bottom of the search results. Only time will tell what European regulators will do about the complaint filed by Spotify. They might not do anything.