FTC Trouble May Be Headed For Apple Music

Apple Music launched late last month and the service has received mixed reviews. While it offers the signature iOS aesthetics that many people appreciate, the feature set really doesn't bring anything new to the table especially with veterans like Spotify recently updating their service to support an array of advanced features.

At $9.99 per month, Apple Music is on par with rivals like Spotify Premium and Rdio Unlimited though a dilemma has come to the attention of the FTC. Due to Apple's pricing structure, the company receives 30% of all in-app purchase sales meaning anyone who downloads the free version of Spotify or Rdio and upgrades via the app will forfeit $3 to Apple each month bringing the total revenue generated by the parent service down to $6.

In Apple's case, they are able to bring in the full $9.99 payment with no added fees thus forcing rival services to seriously consider a price increase to compete in the marketplace. While the FTC hasn't issued a full-blown investigation just yet, they are interested in looking into the matter further as well as determining if several of Apple's other App Store restrictions are indeed lawful.

Via: Engadget
Source: Reuters