After music and podcasts, Spotify intends to make a name for itself in the audio book market. A rather logical continuation for the firm, which is now targeting 200 million paying subscribers. She did not do things by halves, since in November 2021, she bought the American company Findaway specializing in audio books for $ 123 million.
Spotify launched its offer last month, with just over 300,000 titles available in English. However, the platform believes that Apple is demonstrating behavior “anti-competitive” from his view.
Spotify already offers more than 300,000 English audiobooks in its new offer. ©Spotify
It must be said that setting up the service on the App Store was quite laborious. The Cupertino company has indeed rejected Spotify’s request three times, claiming a violation of its guidelines. According to her, the Swedish wanted to circumvent the rules relating to in-app purchases in its latest update.
To be able to market its offer, the streaming giant had to hide the prices of its audio books, but also finalize sales outside the application via a link received by email. A nine-step process, which does not necessarily encourage you to take the plunge on the iPhone. Apple for its part explained to the New York Times “providing clear advice on how to solve the problem”.
Spotify believes that Apple is abusing its position because of the commissions demanded by the App Store.
Users wishing to listen to an audiobook in the iOS application are faced with a fairly clear message: “You can’t buy this audiobook in this app. We know it’s not ideal”.
A matter of money
This clash is not trivial. Spotify refuses to pay a 30% commission to Apple on each book sold on iOS. The firm believes that this commission harms consumers, and that it allows Apple Books, the Californian’s dedicated service, to maintain an ultra-dominant position. Daniel Ek, the CEO of Spotify, did not hesitate to recall it in a press release by declaring that Apple “proves once again that it can do anything with the rules of its App Store”.
In 2019, Spotify had already attacked Apple for a similar reason.
In 2019, Spotify had already attacked Apple before the European Commission, pleading an abuse of dominant position favoring Apple Music. Three years later, the file is still not closed. But this new story should be of interest to regulators and those who want a more competitive App Store.
The way the Cupertino company reacts is not very surprising. Much of its business strategy is based on its online store. According to New York Times, the latter’s business is expected to generate $24 billion this year alone, with profits approaching 80%. Exceptional results, which push Apple to defend itself tooth and nail on the subject.