After Spotify filed a complaint against Apple earlier this week, Apple has today released a statement trying to address Spotify’s claims.

According to the statement:

What Spotify is demanding is something very different. After using the App Store for years to dramatically grow their business, Spotify seeks to keep all the benefits of the App Store ecosystem — including the substantial revenue that they draw from the App Store’s customers — without making any contributions to that marketplace. At the same time, they distribute the music you love while making ever-smaller contributions to the artists, musicians and songwriters who create it — even going so far as to take these creators to court.

and

Spotify wouldn’t be the business they are today without the App Store ecosystem, but now they’re leveraging their scale to avoid contributing to maintaining that ecosystem for the next generation of app entrepreneurs. We think that’s wrong.

Great points, but the statement complete sidesteps why the company disallows apps to mention other available payment models. I think Apple is fair in asking for a 30% cut for payments made through the App Store, but Spotify (and other apps) should also be allowed to tell their users that they can purchase the same subscriptions, using other payment methods, sometimes cheaper, from the service’s own website. Apple itself says that many Spotify users are free users and Apple is fine not getting any revenue from them. For any revenue Spotify receives outside of the App Store payment system, Apple shouldn’t need to ask for a cut.

Moreover, Spotify wouldn’t be in this tough position if Apple didn’t have its music streaming service, with substantial unfair advantages over Apple, offered at the same price as Spotify. Right now, Apple offers a competitor service on the same platform as Spotify, at the same price as Spotify, and has substantial advantages that users like.

Spotify has announced that it has filed a complaint against Apple with the European Commission (EC), the regulatory body responsible for keeping competition fair and nondiscriminatory.

Daniel Ek, founder and CEO of Spotify, writes:

In recent years, Apple has introduced rules to the App Store that purposely limit choice and stifle innovation at the expense of the user experience—essentially acting as both a player and referee to deliberately disadvantage other app developers. After trying unsuccessfully to resolve the issues directly with Apple, we’re now requesting that the EC take action to ensure fair competition.

and

We aren’t seeking special treatment. We simply want the same treatment as numerous other apps on the App Store, like Uber or Deliveroo, who aren’t subject to the Apple tax and therefore don’t have the same restrictions.

More power to Spotify!

The company has created a lovely website called Time to Play Fair that shows a timeline of all the ridiculous App Store policies that Apple has in place as well as the rejections that Spotify has faced over the years.

Sarah Perez, writing for TechCrunch:

[Sensor Tower] found that U.S. iPhone users spent 23 percent more on in-app purchases in 2017 than they did the year prior – or, an average of $58 per active user was spent on in-app purchases, up from $47 in 2016.

Hardly surprising when it comes to games — they’re a hot category to build for these days. But the 57% jump in the entertainment category is interesting to see.

Apple Decreases Pricing of Apps on the Indian App Store As it Adjusts Pricing for Several Countries

App Store India Pricing January 2018

Apple has adjusted the App Store pricing for several countries this week to account for foreign exchange rate fluctuations and tax changes. App Store developers were notified of this change via an email earlier this week, as reported by 9to5Mac. Apple periodically adjusts the pricing on the App Store to account for these changes and the last major change for pricing of apps for Apple customers in India happened in January 2017 when Apple increased the pricing of apps on the App Store for India by around 25% to 32%.

App Store Pricing Adjustment for India

According to the email that Apple sent out to developers, the pricing for apps in India will decrease.

India: Prices will decrease for apps and in-app purchases (including auto-renewable subscriptions)

As a consumer, it’s obvious to get excited upon reading that, but wait till you hear the new pricing that is now live on the App Store. The pricing of apps on App Store India has been reduced by Rs. 1. That’s right, apps will cost less by a whole Rupee going forward.

Here are the top pricing tiers now active on the App Store:

App Store India Pricing January 2018

App Store India Pricing January 2018

I’m not really sure why Apple decided to make this minor change to the pricing. I’m hoping that this ₹1 discount is just cosmetic — such that the pricing appears in line with the standard xx.99 way and that the change announced in the email is rolling out in the coming days with a notable change in the pricing.

What do you think about this change? Let me know your thoughts on Twitter @preshit or @nuclearbits.

[h/t @macpeercom]