Because we'll never grow too old for playground antics …
According to some random and unnamed sources out snitching on their respective companies, US antitrust regulators are snooping around on Apple trying to figure out if its treatment of other music streaming companies is legit.
As of right now, Apple takes 30 percent of all purchases made on an App Store application, which causes some companies, like Spotify, to boost rates to avoid a loss in margins. This is the sole reason a $9.99 / month subscription fee on Spotify is currently $12.99 / month if bought through the Apple-delivered app.
To combat the scammy-feeling 30 percent “up-the-yang” surcharge, Spotify recently went on the defensive and made an open statement on how to avoid the extra $3 fee. To save valuable coin, one simply cancels the current subscription through the iTunes account and signs back up through a web browser.
Annoying as all get out, sure, but not likely something people will spend time doing just to save a few dollars. This puts Apple in a good position because its $9.99 / month price tag looks a lot better compared with others’ offerings.
The strong-arming (read: smart and ruthless business practice) may be illegal, then again it may not be — that’s what the FTC is trying to figure out.
"The margin in music is quite small, and the App Store diminishes the margin," Deezer CEO Tyler Goldman tells the Business Insider. "It will be an issue for the industry going forward. You can either raise your prices and not be competitive with Apple's price, or you can have no margin."
In trying to reach her for comment, all 137 of our phone calls to Taylor Swift were immediately sent to voicemail. Also, we're being arrested right now for harassment … brb
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