- General
- May 2, 2021
- 4 minutes read
EU Comes For Apple Again With Antitrust Charge
The European Union has once again picked an antitrust fight with Apple, this time over the company’s App Store rules…
The European Union has once again picked an antitrust fight with Apple, this time over the company’s App Store rules of music streaming apps competing with Apple Music mandated to use Apple’s in-app purchase system from which it gets a commission.
The EU has issued its Statement of Objections to Apple disclosing where it takes offense on the company’s practices. The issued statement represents an initial, formal stage of antitrust proceedings against Apple, which’s been given 12 weeks to respond in its defense.
Details:
- The antitrust complaint centering on Apple’s dealings with music streaming app developers follows formally filed complaints from Spotify against Apple’s practice of making it mandatory for apps on its App Store to use its in-app purchase system or face restrictions. Spotify is the main rival to Apple Music and itself one of Europe’s foremost tech companies.
- In the EU’s statement, the commission highlighted two major objections which are the mandatory use of Apple’s proprietary in-app purchase system for music streaming apps and Apple’s “anti-steering provisions” which prevents developers on its App Store from informing users of alternative purchasing possibilities outside of apps.
- With its objections, the EU charges that Apple’s rules “distort competition” in the market for music streaming apps and in turn creates higher prices for consumers for their in-app music subscriptions on iOS devices. If the charges are formally confirmed, Apple would be found in violation of EU rules and could face a fine of up to 10% of its annual revenue from the commission.
- Apple has had opposition towards its App Store rules coming from relatively smaller rivals like Spotify all the way to a fellow tech giant like Microsoft. The iPhone maker has made many foes from that arena.
Bottom line: Apple has a long history of fighting with the EU, with a variety of issues ranging from tax avoidance to competition concerns with Apple Pay. This is the latest spat between both parties.
