Apple hits back at Spotify over claims that it is abusing its control of iOS

When two tribes go to war...

Apple has hit back at Spotify over claims that Apple is abusing its control of the iOS platform to compete unfairly in businesses like streaming music.

Spotify claimed that the requirement that all in-app sales in the iOS ecosystem be made via Apple's own payments system, from which it takes a generous 30 per cent cut, puts it and anyone else who competes against Apple at a major disadvantage.

But Apple General Counsel Bruce Sewell has back, countering with the L'Oréal argument - that Apple is worth every penny.

In a letter pinged back to Spotify, Sewell wrote: "We understand that you want special treatment and protections from competition, but we simply will not do that because we firmly adhere to the principle of treating all developers fairly and equitably."

However, Sewell didn't broach the more serious claims that Apple's practices potentially caused anti-trust issues.

Last week, it emerged that Spotify had accused Apple of using anti-competitive practices on its iOS platform in a bid to favour its own Apple Music service at the expense of rivals.

Sporify claimed that Apple is using its control of the iOS platform and App Store to keep the latest Spotify app out of the iOS ecosystem, with terms and conditions that favour the Apple Music service.

Spotify said that Apple had rejected a new version of the company's app from the App Store, citing various technicalities.

Apple, meanwhile, had claimed that Spotify's app did not conform to "business model rules", because its App Store rules demand that app sellers, including Spotify, use Apple's own billing system "to acquire new customers and sell subscriptions".

At issue is the iTunes billing system that Apple insists app developers use if they wish to offer in-app purchases. Apple takes a 30 per cent fee for the privilege, which Spotify is forced to pass on to customers. Spotify claimed that this makes its service appear uncompetitive, and has previously been forced to reduce its free streaming options due to the so-called 'Apple tax'.

The claims were made in a letter from Spotify general counsel Horacio Gutierrez to his counterpart at Apple, Bruce Sewell, dated 26 June and leaked to the Recode website.

The letter suggested that Apple could face legal action under antitrust laws in the US and the European Union as a result of its actions. And to underline the threat, Spotify sent copies to a number of the firm's chums in Washington.

"This latest episode raises serious concerns under US and EU competition law," wrote Gutierrez. "It continues a troubling pattern of behaviour by Apple to exclude and diminish the competitiveness of Spotify on iOS and as a rival to Apple Music, particularly when seen against the backdrop of Apple's previous anti-competitive conduct aimed at Spotify.

"We cannot stand by as Apple uses the App Store approval process as a weapon to harm competitors."

Recode noted that Spotify has bent official ears on both sides of the Atlantic on the dispute since the launch of Apple Music in June last year.

Apple introduced the billing system demands to its terms and conditions for app developers in 2011. There was an outcry, but most app developers got with the programme.

Apple also takes a dim view of app developers who seek to circumvent the iOS payments toll by encouraging users to sign up and pay elsewhere.

This didn't stop Spotify recently offering a cut-price promotion to persuade people to sign-up via its website, instead of the via the iOS app.

Nevertheless, Spotify is not exactly spotless itself: in August 2015 users were warned over a data grab the company made in changes to its own terms and conditions. The subsequent outcry forced it to row back.