Apple says it already changed its rules enough to satisfy Spotify EU complaint

AppleInsider

The European Union is to hear Apple's argument on Friday, against an anti-steering accusation that was initiated by Spotify, and could lead to an almost $40 billion fine.

Spotify's App Store icon (left), Apple Music (right)

Back in 2019, Spotify complained to the EU that Apple was abusing its monopoly by forcing developers to use the App Store's payment system. At the same time, the music streamer claimed that Apple was also unfairly denying it the ability to inform users of lower prices on its website.

In response, the EU began an investigation, and in 2021 issued a preliminary report. That report did say that Apple was in breach of EU laws over the promotion restrictions, or anti-steering measures, but not the App Store payment issue.

Spotify did not take that ruling well.

As part of the preliminary report, though, the EU issued Apple with a Statement of Objections, to which the company must respond.

Now, according to Reuters, European Commission officials and what are described as their peers in national competition agencies, will hold a closed session with Apple.

In the session scheduled for Friday, Apple is expected to argue that Spotify's complaint about the dominance of Apple Music has no merit. Currently Spotify is the dominant streamer in Europe, with Apple Music reportedly coming in either third or fourth place over most EU countries.

Apple is also expected to argue that it has revised its rules so that what it calls "reader apps," such as Spotify, can link to their websites for account setup and management.

It's not clear when the European Commission will issue a final ruling after this hearing. But if Apple is still deemed to have breached the anti-steering laws, it could face a fine of $39.4 billion.

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foregoneconclusion

ONCE AGAIN...only 1% of Spotify's iOS subscribers signed up through the App Store. The other 99% signed up online. How could their claims have any merit based on those facts? 

FileMakerFeller

foregoneconclusion said:

ONCE AGAIN...only 1% of Spotify's iOS subscribers signed up through the App Store. The other 99% signed up online. How could their claims have any merit based on those facts? 

I have noticed that European regulators are much more concerned with the theoretical purity of their rules than the practical impact. The fact that the number of subscribers involved is only a small proportion doesn't matter - a rule is a rule, and rules apply to everyone.

In the US, folks seem to be happy with the application of rules being variable as long as the outcomes are usually equivalent - the cost of 100% adherence is seen to be too high, and there are other issues vying for resources. A philosophical approach of improving lots of things by 1% rather than a few things by 100%, you might say.

Vive la difference, eh?

gatorguy

Reports today say the EU is coming down on the side of Spotify, stating that Apple's anti-steering rules are anti-competitive and thus illegal. There looms a possibility of 10% of Apple's worldwide revenue as a fine, but I don't expect that to be part of the punishment.