Big Technology Podcast Inside Spotify's War With Apple — With Spotify Chief Legal Officer Horacio Gutierrez
Nov 17, 2021
Horacio Gutierrez, Spotify’s Chief Legal Officer and global affairs head, fiercely critiques Apple's alleged anti-competitive practices. He shares insights on Spotify's struggles against Apple's dominance and discusses antitrust challenges in the tech industry. The conversation highlights Spotify's choice to abandon Apple’s payment system to combat unfair fees, the potential impact of legislative changes, and the future of app store policies. Gutierrez advocates for fair competition, urging timely reforms to reshape the digital landscape.
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The Beats Acquisition
- Spotify initially joined the App Store without a 30% fee.
- After Apple acquired Beats Music and launched Apple Music, they undercut Spotify's price while simultaneously imposing the 30% fee.
Thin Margins in Music Streaming
- The music streaming business operates on thin margins, making Apple's 30% fee a significant burden for Spotify.
- This fee forced Spotify to raise prices, putting them at a disadvantage against Apple Music.
Selective Fee Application
- Apple selectively applies the 30% fee, targeting digital content competitors like Spotify, while exempting companies like Facebook and Uber.
- This discriminatory practice contradicts Apple's claim that the fee is essential for ecosystem health.