European Commission charges antitrust breach on Apple, saying that Apple is unfairly supporting Apple music over Spotify and other music streaming platforms

The European Commission has informed Apple of its preliminary views that it is not supporting the perfect competition in the music streaming market as it has abused its leading position for the distribution of music streaming apps through the Apple App Store. The Commission takes issue with the compulsory use of Apple’s own in-app purchase tool imposed on music streaming apps developers to allocate their apps through the Apple App Store. App developers are incapable to inform the users of other ways to purchase the same apps elsewhere; it was another issue that the Commission was concerned with. Apple has a period of twelve weeks to respond to the charges. The statement of the objection focuses majorly on two rules that Apple imposes in its agreement with the music streaming app developers. With name, Apple’s branded in-app purchase system and anti-steering requirements.

As the initial judgment, the Commission did not announce any fine or charges were levied today. The next step of the commission is to review this case with Apple Company. With this period completes, the commission will then decide whether to impose any fine or continue with formal charges and compensation. If the commission finds that Apple is in breach of the competition law, it has the authority to force Apple Company to alter the rules of Apple Store and issue a fine for the past felonies, which can be worth up to 10% of the total annual income of Apple. Spotify filed the complaint for the first time in the year 2019, other companies named Match and Tile also express their content with Apple’s App Store strategy. However, the sources say that Epic Games and Apple will go to court next week over a lawsuit that’s the main point is that Apple does not allow the apps developers to offer substitute payment methods in their apps.

The founder of Spotify said in response to the news of commission charges against Apple that today is a big day because fairness is the major key of competition in the market and we are one step nearer to creating a playing field. This is very important for the whole ecosystem of the developers of Europe. The policies of App Store need apps to use in-app purchase for virtual transactions, and Apple takes the commission from 15% to 30%. This is the main hurdle for many competitors like Spotify to offer the same service at the same price as Apple is providing. Apple gave the statement in response to the announcement of commission that Spotify has become the major music subscription service in the world and Apple has played a major role in it and Spotify did not even give the commission to Apple for over 99% of their subscribers and they only gave the commission for the rest of the subscribers they gained through Apple App Store. The statement of the commission on the behalf of Spotify is conflicting with the fair competition in the market. However, Spotify is in favor of this decision.

Photo: DKart via Getty Images
H/T: TC.

Read next: New Search Labels Might Make Apple App Store Easier to Navigate

No comments:

Post a Comment