EU has issued a statement that says Apple’s App Store rules are unfair… as it does not allow a level playing field on the internet, according to their investigation.
The EU started a formal investigation into Apple’s App Store rules June of last year, after Spotify complained in 2019. Spotify says that Apple’s App Store rules make it impossible for the company to stay competitive.
After their investigation, Europe’s preliminary conclusion is that Apple is in breach of Europe’s competition law.
“Our preliminary conclusion is that Apple abused its dominant position for the distribution of music streaming apps through its App Store and distorted competition in the music streaming market,” the EU Commissioner for Competition Margrethe Vestager said in a statement on Friday.
Our preliminary conclusion: @Apple is in breach of EU competition law. @AppleMusic compete with other music streaming services. But @Apple charges high commission fees on rivals in the App store & forbids them to inform of alternative subscription options. Consumers losing out.
— Margrethe Vestager (@vestager) April 30, 2021
This simply means thatt Apple’s App Store fees leave streaming platforms like Spotify and Deezer no choice but to pass the burden onto consumers… if they want to stay competitive with Apple’s own Apple Music service.
Spotify CEO Daniel Ek taking to Twitter described the EU finding as “big day”. adding that “We are one step closer to creating a level playing field, which is so important for the entire ecosystem of European developers,” Daniel added.
Today is a big day. Fairness is the key to competition. With the @EU_Commission Statement of Objections, we are one step closer to creating a level playing field, which is so important for the entire ecosystem of European developers. https://t.co/dOw1K0Qo1W
— Daniel Ek (@eldsjal) April 30, 2021
Of course, we expected Apple to put up a defense assual and they did… rejecting the EU’s findings.
“Once again, they want all the benefits of the App Store but don’t think they should have to pay anything for that. The Commission’s argument on Spotify’s behalf is the opposite of fair competition,” the company said in a statement.
Apple is left with 12 weeks to formally respond to EU’s objections. If the company fails to make changes to its App Store rules, it could be slammed fine of up to 10 percent of its annual revenue, and for Apple, that will be billions of dollars.