Music services accuse App Store pricing of being anticompetititve

Following reports earlier this week that Apple has been using its influence to encourage record labels to kill off free streaming licenses for services like Spotify and YouTube, some services are accusing Apple of anticompetitive pricing as a result of its App Store subscription model. Several music industry sources have spoken with The Verge, strongly calling out Apple for the thirty percent cut that it takes from all in-app subscriptions, which of course includes subscriptions to services such as Spotify and Rdio. While the sources acknowledge that some fee for administrative overhead is reasonable, the feeling is that a 30 percent cut is excessive.

The sense is that Apple gets an unfair pricing advantage for its own upcoming streaming service, as other services are forced to either give up 30 percent of their base fees to Apple, or raise their prices for in-app subscriptions to make up the difference. While most of these services provide alternate methods for purchasing subscriptions outside of the App Store, such as visiting the company’s web site directly, Apple’s App Store Guidelines specifically prohibit redirecting users to a web site or even providing this information in the app itself, resulting in many users not being aware of another way to purchase a subscription.

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