"Spotify CEO urges Congress to pass antitrust legislation for app stores"

Spotify CEO Advocates for Antitrust App Store Legislation in Congress

On Wednesday, Spotify CEO Daniel Ek testified before the House Judiciary Committee’s antitrust subcommittee, urging lawmakers to pass legislation to level the playing field for app developers in the face of what he believes to be monopolistic practices by Apple and Google.

Ek argued that the app store policies of these two tech giants create unfair advantages for their own apps and services, while simultaneously stifling competition and innovation. He stated that these policies ultimately hurt consumers, who are forced to pay higher prices for apps and in-app purchases as a result of the app store fees charged by Apple and Google.

In particular, Ek pointed to the fact that Apple requires app developers to use its in-app payment system, which takes a 30% cut of all transactions, effectively creating a "tax" on developers. He also criticized the fact that Apple doesn't allow app developers to inform users about alternative payment options, effectively preventing them from offering cheaper prices to users who don't want to pay the Apple "tax."

Ek argued that this creates an unfair advantage for Apple's own apps, such as Apple Music, which don't have to pay the 30% fee. He also noted that Google's app store policies are similarly problematic, albeit to a lesser extent.

To address these issues, Ek called on Congress to pass antitrust legislation that would require app stores to allow developers to use their own payment systems and inform users about alternative payment options. He also advocated for increased transparency around app store policies and fees, to ensure that developers and consumers alike are fully aware of the costs involved.

Ek's testimony comes amid growing scrutiny of the tech industry's power and influence, particularly with regards to antitrust issues. In recent years, both Apple and Google have faced antitrust investigations and lawsuits related to their app store practices.

While it remains to be seen whether Congress will take action on Ek's recommendations, his testimony is likely to add fuel to the ongoing debate around app store policies and their impact on competition and innovation in the tech industry