The European Commission today accused Apple of setting restrictive rules for its App Store, forcing developers to use Apple’s own in-app payment system and preventing developers from telling users that there are other purchase options. The European Commission said in a statement: “These Apple regulations have increased the cost of other music streaming media application developers and distorted competition in the music streaming service market. In turn, this has led consumers to subscribe on iOS devices. The price of in-app music is higher.”
EU Antitrust Commissioner Margrethe Vestager said: “Through the App Store, Apple has become the gatekeeper for iPhone and iPad users. By setting strict rules on the App Store, the music of competitors can be streamed. Media services are at a disadvantage. Apple has deprived users of cheaper music streaming options and distorted competition.”
The case began two years ago, when the Swedish music streaming service giant Spotify filed a complaint with the European Union against Apple, accusing Apple of charging it a 30% subscription fee in exchange for the Spotify application on the App Store. In addition, Apple also refuses to let users know about cheaper access (Spotify) methods outside of its ecosystem.
Regarding Spotify’s complaint, the European Commission launched an investigation in June 2019. Vestag said at the time that Apple seemed to have become a “gatekeeper” in distributing apps and content to iOS device users.
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Apple responded at the time that the App Store has made Spotify what it is today and has become a public company. Spotify only wants to get benefits from the App Store but does not want to make any contribution.
As for the 30% of the Spotify complaint, Apple responded that for free apps, Apple does not charge distribution fees, and only charges 30% for paid subscriptions on the platform. Moreover, if the subscription exceeds one year, the ratio will be reduced to 15%.
And Spotify believes that Apple treats competitors unfairly and aims to promote its own music streaming service. Spotify claims that Apple’s control of its App Store has not only deprived consumers of choice but also deprived other streaming music service providers of the rights.
Apple did this entirely to serve its own streaming music service Apple Music, which was launched in 2015. This is the first time that the European Union has filed antitrust accusations against Apple, and this may result in Apple being fined as much as 10% of its global turnover.
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