How Spotify Outsmarted Apple and Built a $120 Billion Empire

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In 2015, Apple set its sights on crushing Spotify. With a $200 billion war chest, full control over the iPhone ecosystem, and powerful record label connections, Apple seemed poised to dominate music streaming with the launch of Apple Music. But instead of fair competition, Apple tried to rig the game—and that decision ended up fueling Spotify’s meteoric rise into a $120 billion giant.

Apple imposed a 30% “Apple tax” on Spotify’s in-app subscriptions, forcing them into an impossible choice: charge users $12.99 while Apple Music stayed at $9.99, or absorb the cost and bleed money. Instead of playing along, Spotify took a bold risk—they removed in-app purchases entirely, forcing users to subscribe via their website.

Apple didn’t take kindly to being defied. In retaliation, they blocked Spotify app updates, rejected new features, and delayed bug fixes—crippling the user experience while Apple Music thrived. But Spotify had one advantage Apple couldn’t touch: accessibility.

While Apple Music was locked into iOS, Spotify was everywhere—on Android, Windows, PlayStation, Tesla, smart TVs, and even Apple’s own devices like MacBooks and Apple Watches. Spotify’s strategy of being platform-agnostic turned the tide in its favor.

Fast forward to 2025, and Apple is now facing regulatory fire from global watchdogs. Spotify’s defiance led to worldwide scrutiny of Apple’s App Store policies, forcing major changes and cracking down on anti-competitive practices.

Apple tried to kill Spotify, but instead, they made it stronger. In the battle of David vs. Goliath, the underdog didn’t just survive—he’s winning.