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The European Commission has issued a fine of 1.8 billion euros for Apple: according to the EU, the Apple company abused its own dominant position in the music streaming market.
The question is always the same, which has been going on for some time now: the first time we wrote about an accusation made by Spotify against Apple was way back in 2016. For years, in fact, companies that provide subscriptions to services via the App Store have they complain about commissions requested by Apple (equal to 30%): and if the company’s high commissions can make developers turn up their noses in general, the situation is even more complex when it comes to music streaming.
Since Apple has its own music streaming service, whose subscription cost is similar to that of the competition (€9.99/month), for years Spotify has accused Apple of abuse of dominant position. According to this view, asking developers such a high commission for in-app purchases (such as subscriptions) and at the same time preventing (via policy) developers from telling users that it is possible to pay for the subscription outside of App Store, would have caused a distortion of the free market.
The European Commission ruled in favor of Spotify, condemning Apple to one very heavy fineas well as requiring that iOS users be explicitly informed of the possibility of purchasing a streaming subscription even outside the app, as well as of the possible variations in cost between subscriptions purchased via in-app purchase or via browser .
Apple has already communicated that will appealspecifying that similar sentences do not consider the fundamental role that the App Store (and the entire iOS platform) have played in allowing software like Spotify to become what it is.
Furthermore, Apple complains that the European Commission’s decision is not based on tangible damage and that, at the moment, Spotify is the biggest name in the music streaming market, with a share of users more than double that of Apple Music.
An Apple spokesperson stated:
Today the European Commission announced a decision that the App Store represents an obstacle to competition in the digital music market. The decision was made despite the Commission’s failure to uncover credible evidence of consumer harm and ignores the reality of a thriving, competitive and rapidly growing market.
The main supporter of this decision – and the biggest beneficiary – is Spotify. Spotify has the largest music streaming app in the world and has met with the European Commission more than 65 times during this investigation. Today Spotify holds a 56 percent share of the European music streaming market – more than double that of its closest competitor – e pays nothing to Apple for the services that have helped make them one of the most recognizable brands in the world. Much of their success is due to the App Store, along with all the tools and technology Spotify uses to create, update, and share their app with Apple users around the world. We’re proud to play a key role in supporting Spotify’s successas we have done for developers of all sizes, since the early days of the App Store
