Spotify's App Store complaint carries 'meaningful risk' for Apple, KeyBanc says

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Spotify's App Store complaint carries 'meaningful risk' for Apple, KeyBanc says
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Apple prevents companies from linking to alternative payment methods that would circumvent the 30-percent cut.

Spotify's App Store complaint — filed with the European Commission's antitrust regulators and revealed Wednesday — carries"meaningful risk" for Apple and its burgeoning services revenue, analysts for KeyBanc said in a note Wednesday.

"We believe Spotify is largely on the right side in both facts and principle, which creates risk that App Store policy terms will be forcibly changed in a way that negatively impacts Services revenue and Apple's brand," analysts at KeyBanc wrote in the note. App Store revenue continues to rise, as more subscription companies launch on the service. KeyBanc estimates App Store revenue will total $13.4 billion and account for 12 percent of Apple's gross profit for the fiscal year 2019.

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