For a long time now, Spotify has defied Apple in their App Store commission rates, and the recent move to prevent iOS users from subscribing via Cupertino's system still stands. There were earlier reports that claimed Spotify is moving back to using the iOS in-app purchases feature after enforcing the alternative methods and third-party payment systems, but they clarified their official stand.
On various occasions in the past, Spotify has expressed its distaste for Apple's App Store commission rates, with the infamous 70-30 split not a good deal for the company.
Spotify is NOT Supporting iOS In-App Purchases, App Store
(Photo : TORU YAMANAKA/AFP via Getty Images)
Spotify released a statement (via The Verge) that talks about its plans to continue its use of third-party payment options and channels for iOS users, for all Premium subscriptions and payments. This was after an initial claim that centers on Spotify going back on their initial decision of leaving the App Store in-app purchases payment method, caving into the platform.
We have no plans to switch IAP [in-app payments] on at the moment.
-Farshad Shadloo, Spotify's Global Head of Corporate and Policy Communications.
This means that iOS users still need to subscribe to Spotify Premium via the available third-party services which the streaming platform approves of, without the 30 percent commission.
Read Also: Spotify Faces Backlash Amidst Shifting Focus on Artist Compensation, Efficiency
Apple's App Store Commission Rates for Purchases
Apple has been known for its 30 percent commission rate for in-app purchases for a long time now, and the company has held on to this until the latest offer known as the Small Business Program. For massive companies who earn more than 1 million USD per year, they still face the 30 percent rate which will be deducted by Apple for all transactions via the App Store.
However, it is a different story for those who earn lower than $1 million yearly, as they get to enjoy half the commission rate, with 15 percent of the take coming to Apple.
Spotify's Defiance of Apple's Commission Rates
Earlier this year, Spotify began removing legacy iOS subscribers on the Premium but asked them to resubscribe to the platform's paid tier again but on a different payment channel or system. This is one of Spotify's acts of defiance against Apple, with the platform known for its vocal criticism of the 30 percent App Store commission rate which is a long-time setup by Cupertino.
Moreover, last year saw Spotify pulling out its Audiobooks from the iOS app version, a month after releasing the feature for global users on their smartphone platforms. Buying the audiobooks straight from Spotify iOS is also subject to the 70-30 commission split, and since this is something which Spotify denounces, but reported claims say that Apple regarded this as a violation of its rules and policies in the App Store.
The Spotify CEO, Daniel Elk, is also a vocal protestor and critic of this 30 percent commission rate on the Apple App Store, and on various occasions, the executive dissented from his take.
While initial rumors claimed Spotify caved into Apple's policies, the company clarified that it is not true, and what remains is its decision to pull out from the service.
Related Article: Epic v. Google: Secret Spotify Deal Sees Zero Commission Rate on Play Store
