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FTC Scrutinizes Apple’s 30% Cut of Competing Music App Subscriptions in App Store

FTC Scrutinizes Apple’s 30% Cut of Competing Music App Subscriptions in App Store

The United States Federal Trade Commission is said to be looking into claims that Apple’s rules for in-app purchases of rival streaming music apps available in the App Store is illegal under federal antitrust law.

FTC Scrutinizes Apple's 30% Cut of Competing Music App Subscriptions in App Store

Reuters:

Apple recently launched a new music streaming service, Apple Music. It also provides the App Store platform for competing streaming services including Jango, Spotify, Rhapsody and others.

Apple takes a 30 percent cut of all in-app purchases for digital goods, such as music streaming subscriptions and games, sold on its platform.

Some streaming companies complain that Apple’s 30% cut forces them to charge more for subscriptions via their iOS apps than they do on other platforms, otherwise, their profit margins disappear.

While Reuters’ sources say the feds are looking into the issue, a formal investigation has yet to have begun. The sources, who requested anonymity, say the FTC has held meetings with concerned parties, but the agency regularly meets with such parties, and a formal investigation may not materialize.

Apple has declined to comment. The FTC has also declined to comment.

Apple is a late-comer to the music streaming subscription game, competing with such companies as Spotify, Rhapsody and others.

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