Daniel Ek, chief executive and founder of Spotify, has said technology entrepreneurs support his attack on the market dominance of Apple but will not speak out because they are afraid of “retaliation”.
Ek is calling for regulators to curtail the tech giants’ role as “players, rule-makers and gatekeepers” of the mobile internet, and has said that the UK can play a leading role through the Digital Markets, Competition and Consumers Bill.
The bill, which is making its way through parliament, would give competition regulators stronger powers to tackle market dominance and to protect consumer rights.
Last week Ek wrote that he would not have been able to launch the music and podcast streaming service today because of Apple’s dominance and that parliament must not be swayed by tech companies “aggressively fighting the bill”.
Yesterday he told The Times the response to his plea had been “amazing, across the board. So many entrepreneurs say they agree but are afraid of speaking out because of retaliation.”
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He added: “We’re continuing to discuss this with consumer groups, Westminster and various parts of parliament to get this over the finish line, but I feel good about it — it’s a great thing for the UK, great for businesses, great for consumers.”
Ek wrote in the Daily Mail last week that Apple should eliminate the “tax” it charges for access to its App Store or be forced to allow alternative stores on to its devices.
He told The Times: “They won’t charge 30 per cent [App Store fee] to their own music service, so they should allow us not to pay 30 per cent so we can compete on a level playing field.
“And we should be able to communicate offers to consumers inside our app — something we are not allowed to do today. That is not good for consumers.”
Ek was speaking as Spotify said that between July and September its monthly active users, subscriber numbers, total revenue and gross margin all beat market expectations in one of the strongest quarters it had enjoyed since going public in 2018.
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Monthly active users rose to 574 million in the third quarter, 26 per cent higher than last year. Premium subscribers, who account for most of its revenue, rose 16 per cent to 226 million.
Revenue rose 11 per cent to €3.36 billion, beating estimates of €3.33 billion. In the UK, Spotify’s most popular podcasts included Steven Bartlett’s The Diary of a CEO, while in music there were popular releases from Taylor Swift, Olivia Rodrigo and Central Cee.
It posted a third-quarter operating income of €32 million, its first quarterly profit since 2021, helped by a higher gross margin and lower marketing and personnel costs.
Ek, 40, told analysts Spotify was focused on improving efficiency and would resist “overpaying and overinvesting” in exclusive podcasts. In June it ended its $20 million podcasting deal with the Duchess of Sussex after only one season of her show.
