Is Spotify's rejection of Apple's 27% commission justified?

 

Apple Headquarters. —AFP/file

Apple has updated its company policy allowing app developers to sell their products in places other than Apple’s stores, but it comes with a cost.

They are to pay a 27% commission, BBC reported.

The firm introduced the fees in the US as a result of a long-running legal battle with Fortnite developer Epic Games.

The court ruled in favour of Apple on several points, but Apple lost the count when it prohibited app developers from informing users about other payment methods, such as links that pass Apple's own App Store payment mechanism.

Apple charges the biggest developers a 30% fee to use this system, though smaller developers pay around 15%, and 85% of developers don't pay a fee at all.

Apple has implemented new regulations in the US as a result of the verdict, allowing users to subscribe to services without utilising its system in exchange for a fee that could reach 27% for developers.

According to court documents filed by the firm, it said the commission charge was compliant with the court ruling, adding that App Store developers benefit from Apple's services.

Spotify has reacted with fury, to the new policy, saying it "flies in the face" of the US court's attempt to enable greater competition.

It called Apple's move "outrageous" and accused the tech giant of "stopping at nothing to protect its profits".

Spotify also urged the UK government to intervene and prevent Apple from implementing similar fees in the UK.