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Apple says it collects a fee, less than 1% of the Spotify users

(Reuters) – Music streaming service Spotify Technology SA is paying Apple Inc. a 15% handling fee, about 680,000, of the 100 million premium customers, Apple announced in a comment on the Music’s formal complaint to the European anti-trust regulators.

FILE PHOTO: The first logo is on the front of the New York stock exchange in the U.S. and the Swiss flag as well as for the company as well as an overview of the supply of a direct quotation in the New York, New York, USA, April 3, 2018. REUTERS/Lucas Jackson/File Photo

The Premium customers have to pay a monthly fee or a free trial of Spotify’s premium service, which is ad-free. Spotify has a total of 217 million customers, including users of the free service.

Apple is competing directly with Spotify and the Apple Music service. In March, Spotify, has filed a formal complaint with the Eu regulators are saying that Apple’s control of the App Store, including the cost of transportation charges for taking payments from the store, it was the state of the country, it is difficult for rivals to fight for the music, subscribers.

Apple charges a 30% fee on in-app purchases from the App Store, a figure that drops to 15% off of subscription purchases, after the two-year period.

In return, Apple handles all the mechanics of billing and payments in more than 100 countries. But Apple’s response to the first complaint, Apple said that Music does not currently pay a 30% fee of the premium, and that it is only a small part of it will be affected by the charges.

Apple said that the Music used in the App Store’s billing system, from 2014 to 2016. Because of the 680,000 premium Spotify customers who signed up during that period of time, all to pay for more than a year, Spotify is paying Apple to lower the 15% fee on them, Apple said in its response.

Apple has also been said that Spotify has paid nothing for premium subscribers, who have registered over the past three years, since Spotify does not use Apple’s in-app purchasing system.

Spotify declined to comment on the figures. Apple filed its response on May 31, but the documents were not available to the public. The German newspaper Der Spiegel, the previously reported amounts of the company’s response to them.

Spotify’s complaint, the supervisors are also included accusations of Apple’s expenses, including the steps of Spotify said Apple has to stop with the use of the App Store’s payment system. The company will be tightened in the App Store’s rules, after 2016, of the bar, the app’s creators to provide links or buttons that take you to external web pages that tell how to pay for an upgrade to a premium subscription outside of the App Store.

“Promotions are critical to our business. This is how we set up our free of charge clients a premium,” Horacio Gutierrez, Spotify’s general counsel, told Reuters in March.

Music is also, in her complaint said that Apple does not allow Music on the HomePod, the Apple, the smart speaker.

Report by Stephen Nellis in San Francisco; Editing by Cynthia Osterman

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