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  • FTC Reportedly Issuing Subpoenas in an App Store Investigation

    The Federal Trade Commission has reportedly expanded its inquiry into Appleís policy of forcing companies to turn over 30% of subscription revenue earned through the App Store. The FTC has done this by issuing subpoenas to streaming services that are in competition with Apple Music. According to the folks over at The Verge, there hasnít been any additional information about what the commission is seeking with the subpoenas though. That being said, the list of companies likely includes one or more of the following: Spotify, Rdio, Rhapsody and Tidal.

    For those of you who didnít know, the FTC started to look into the App Storeís revenue sharing policy earlier this month after competitorís claimed that Apple Music launched with a built-in pricing advantage. To be more specific, since Apple keeps a 30% cut of all in-app purchases, including subscription revenue, services such as Spotify are either forced to raise their prices or face lost revenue from users on the iOS platform. These companies are prohibited by App Store rules from directing consumers to sign up through other means that would allow the users to avoid the 30% cut as well, which is a likely secondary concern for the FTC.

    Weíll have to wait and see what comes of the whole ordeal but if we had to guess, Apple likely wonít be coming out ahead in this case.

    Source: The Verge
    This article was originally published in forum thread: FTC Reportedly Issuing Subpoenas in an App Store Investigation started by Akshay Masand View original post
    Comments 1 Comment
    1. unison999's Avatar
      unison999 -
      So that is how they were able to comply to Taylor Swift's request to pay artists, by passing that cost to other streaming service providers.
      Just playing

      I am not surprised that Apple is doing this, and Apple will not be able to win this one. But I am sure they made enough money in the mean time to make this a worth while thing to do.