> To offer subscriptions on iOS, Spotify must give away 30% of its revenue to Apple. Yet Apple compete with them with Apple Music. Do you think Apple is giving

> To offer subscriptions on iOS, Spotify must give away 30% of its revenue to Apple. Yet Apple compete with them with Apple Music. Do you think Apple is giving away 30% of its Apple Music revenue? This isn't the right read on the situation — Apple pays the 30% in opportunity cost. Now Spotify doesn't actually pay the 30% but let's pretend they did. Every Spotify user they have paying $10/mo nets Apple $3/mo. So if Apple Music wants to enter the market every user they get that would have otherwise been a Spotify user loses them $3/mo. So the cost of the Apple Music subscription has to make Apple $3/mo in profit to break even with the cost of doing nothing. So if Apple's costs are the same as Spotify's for actually providing the service and Spotify charges $10/mo and Apple charges $7/mo Apple is losing money. This is why across different industries and long before Apple existed this practice was ruled not anti-competitive.