Spotify says Apple is “choking competition” and ruining its audiobook store

Spotify says Apple’s rules make the process of buying an audiobook on Spotify “far too complicated and confusing,” adding that Apple changes its “rules arbitrarily, making them impossible to interpret.” Apple charges up to a 30 percent commission on purchases made in apps listed on the App Store, and bars certain developers from using or directing users to an external payment processor.

As outlined in a webpage Spotify specifically made to support its cause, the company says Apple rejected its proposed audiobook purchasing process three times because it went against the App Store’s policies.

Apple spokesperson Adam Dema responded to questions from The Verge (you can read the full statement below) saying Spotify’s app was “rejected for not following the guidelines regarding including explicit in-app communications to direct users outside the app to make digital purchases,” but that Apple has “no issue with reader apps adding audiobook content to their apps, linking users out to websites to sign up for services, or communicating with customers externally about alternative purchase options.”

To comply with Apple’s rules, Spotify hides the price of its audiobooks and doesn’t let users buy content in the app. Instead, you select the book you want to buy and Spotify then emails you a link to check out on the web. This makes it harder to compare prices, which you only find out about through the email. Spotify says this process “harms not only consumers, but, this time, also authors and publishers who now find themselves under Apple’s thumb.” As my colleague Ariel Shapiro pointed out in an edition of Hot Pod Insider, the process of purchasing an audiobook “is not the most elegant.”

“In the absence of government intervention — in Europe, the U.S., or any other market around the world — Apple has shown time and again that it will not self-regulate and has no real incentive to change,” Spotify CEO Daniel Ek said in a statement today. “With our Audiobooks launch, Apple has once again proven just how brazen it is willing to be with its App Store rules, constantly shifting the goalposts to disadvantage their competitors.”

While Spotify could make purchasing audiobooks easier by using Apple’s in-app purchase system, this would subject each purchase to the up to 30 percent commission Apple charges. It would also make it more difficult for Spotify to compete with Apple Books.

Apple spokesperson Adam Dema sent The Verge this statement in response:

The App Store was designed to be a great business opportunity for developers, and we fully support initiatives to introduce new features in apps that provide lasting value for users.

We have no issue with reader apps adding audiobook content to their apps, linking users out to websites to sign up for services, or communicating with customers externally about alternative purchase options. The Spotify app was rejected for not following the guidelines regarding including explicit in-app communications to direct users outside the app to make digital purchases. We provided them with clear guidance on how to resolve the issue, and approved their app after they made changes that brought it into compliance.

Update October 26th, 8:43AM ET: Updated to add a statement from an Apple spokesperson.