Spotify says iOS subscriptions does not address ‘Apple tax’ problem

Apple’s announcement that it is to allow app subscriptions on the iOS App Store is nothing more than a ‘gesture’.

The streaming music service remains critical of both the size of the slice Apple claims from App Store payments, and the inflexibility of Apple’s pricing model.

"It’s a nice gesture, but doesn’t get to the core of the problem with the Apple tax and its payment system," Spotify’s global head of corporate communications and global policy Jonathan Prince told The Verge.

"Unless Apple changes its rules, price flexibility is prohibited, which is why we can never provide special offers or discounts, and means we won’t have the ability to share any savings with our customers.

"Apple still insists on inserting itself between developers and their customers, which means developers will continue to lack visibility into why customers churn — or who even qualifies as a long-term subscriber."

Apple currently takes a 30 per cent share of app revenues. The company has said it will reduce this to 15 per cent for subscription charges when users stay subscribed to an app for a year or more.