Apple’s cut of streaming music rivals’ profits sparks antitrust inquiry

The Federal Trade Commission is looking into whether Apple’s cut of profits taken from rival streaming music apps violates antitrust laws, Reuters reports. Apple takes 30 percent of the $10/month subscriptions sold through iOS apps for streaming music competitors like Jango, Spotify, Rhapsody and others, leading those companies to complain that the higher-than-normal cut Apple takes forces them to charge more than they do on other platforms or see their profit margins eroded. Raising the price would mean making streaming subscriptions for competing music apps more expensive than Apple Music’s $10/month fee. Rivals could deny Apple its cut if users signed up for music subscriptions through their web browser instead of in-app, but Apple’s terms of service specifically prohibit advertising the app’s availability from other sources or linking to the company’s website from the app. These policies are more stringent than the ones Google places on app makers, and three industry sources said the FTC is looking at whether Apple’s tighter rules break any laws, but hasn’t the commission hasn’t yet started a formal investigation. Neither the FTC nor Apple commented on the issue.

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