EU set to slam Apple with antitrust order over App Store practices and Spotify battle

AppleInsiderAppleInsider
Posted:
in General Discussion

The European Union is currently taking measures to curb the power of tech giants, and it's increasingly looking like it may block Apple's App Store rules that apply to music streaming services within its jurisdiction.




The new rule would prohibit Apple's current practice of preventing music streaming services from directing customers away from subscribing via an in-app purchase. In-app purchase subscriptions are routed through Apple's payment service and thus require paying Apple a cut.

According to Bloomberg, Apple could also face a fine of up to 10% of its annual sales, though it notes that the EU penalties seldom reach that level. It also notes that orders for companies to change their business models can be significantly more impactful.

In 2019, Spotify filed a complaint with the European Union against Apple, accusing the tech giant of monopolistic behavior. According to Spotify, Apple was coercing app developers to utilize the App Store's payment system, which was unfair. Additionally, Spotify claimed that Apple infringed on its right to inform users of cheaper prices on its website.

In response, the EU began an investigation and in 2021, a preliminary report was issued. 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. In response, Spotify demanded decisive action against Apple.

Apple, however, claimed it had changed its rules enough to satisfy Spotify's complaints.

In October, it was learned that Spotify CEO Daniel Ek has been lobbying the UK government, saying it should use its freedom from the EU to enact tough new laws to end Apple's dominance with the App Store.

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Comments

  • Reply 1 of 11
    ReginaldGraziyosReginaldGraziyos Posts: 5member
    Why only music streaming? Does it have something to do with Spotify being an European company 🧐
    igorskywatto_cobra
  • Reply 2 of 11
    sphericspheric Posts: 2,564member
    Why only music streaming? Does it have something to do with Spotify being an European company ߧবt;/div>
    No. It has to do with Spotify being the actual company that filed the complaint being investigated here. 

    I'm sure they could have filed a complaint about automotive parts distribution disadvantaging third-party mechanics — but they happen to be a music streaming company, so that's what they filed a complaint about. 
    edited December 2023 beowulfschmidtwatto_cobra
  • Reply 3 of 11
    VakohVakoh Posts: 5member
    As far as I am concerned the EU can go do naughty things to themselves.
    mike1bluefire1igorskywatto_cobra
  • Reply 4 of 11
    macxpressmacxpress Posts: 5,810member
    It's gonna get to the point to where Apple should just pull some products out of the EU countries. The amount of revenue loss and fines it's just not gonna be worth it anymore. 
    igorskydanoxwatto_cobra
  • Reply 5 of 11
    Dead_PoolDead_Pool Posts: 122member
    They hate us ‘cause they ain’t us 
    igorskydanox9secondkox2watto_cobra
  • Reply 6 of 11
    RespiteRespite Posts: 111member
    Vakoh said:
    As far as I am concerned the EU can go do naughty things to themselves.
    You tell them!  
  • Reply 7 of 11
    foregoneconclusionforegoneconclusion Posts: 2,689member
    spheric said:
    Why only music streaming? Does it have something to do with Spotify being an European company ߧবt;/div>
    No. It has to do with Spotify being the actual company that filed the complaint being investigated here. 

    I'm sure they could have filed a complaint about automotive parts distribution disadvantaging third-party mechanics — but they happen to be a music streaming company, so that's what they filed a complaint about. 
    Spotify's complaint to the EU had no relevance to their own business. Less than 1% of their iOS subscribers were paying through the App Store. Which means that iPhone users somehow knew that their smartphone could access more than just the App Store. There were things called "the internet" and "social media" that also contained information about apps and pricing. 
    edited December 2023 ronnigorskywatto_cobra
  • Reply 8 of 11
    aderutteraderutter Posts: 605member
    Eventually Apple might have to introduce a new tier of apps that can be exempt from only using in-app purchases - but costs say $10 per install paid by the developer - up-front payment by the developer of a minimum number of installs, and the installs stop when their balance runs to zero.

    After all, Apple deserve to get paid for use of their platform, no-one can argue against that. 

    I do have to ask though, how come these bullshit cimplaints do not get assigned to Sony or Microsoft on their consoles? Can a game developer put a free to play game on Playstation store for zero cost and push all in-game purchases outside of Sony? No!  They can’t.




    ronnigorskydanoxelijahgJanNLwatto_cobra
  • Reply 9 of 11
    igorskyigorsky Posts: 757member
    foregoneconclusion said:
    spheric said:
    Why only music streaming? Does it have something to do with Spotify being an European company ߧবt;/div>
    No. It has to do with Spotify being the actual company that filed the complaint being investigated here. 

    I'm sure they could have filed a complaint about automotive parts distribution disadvantaging third-party mechanics — but they happen to be a music streaming company, so that's what they filed a complaint about. 
    Spotify's complaint to the EU had no relevance to their own business. Less than 1% of their iOS subscribers were paying through the App Store. Which means that iPhone users somehow knew that their smartphone could access more than just the App Store. There were things called "the internet" and "social media" that also contained information about apps and pricing. 
    That’s what happens when you put a bunch of geezers in charge of a tech regulatory body (US has the same problem). 
    watto_cobra
  • Reply 10 of 11
    sphericspheric Posts: 2,564member
    spheric said:
    Why only music streaming? Does it have something to do with Spotify being an European company ߧবt;/div>
    No. It has to do with Spotify being the actual company that filed the complaint being investigated here. 

    I'm sure they could have filed a complaint about automotive parts distribution disadvantaging third-party mechanics — but they happen to be a music streaming company, so that's what they filed a complaint about. 
    Spotify's complaint to the EU had no relevance to their own business. Less than 1% of their iOS subscribers were paying through the App Store. Which means that iPhone users somehow knew that their smartphone could access more than just the App Store. There were things called "the internet" and "social media" that also contained information about apps and pricing. 
    The question was, “Why only music streaming? Does it have something to do with Spotify being an European company?”

    No. It does not. It has to do with the fact that Spotify’s complaint dealt specifically with the streaming sector. 

    That’s simple statement of fact, and the competence or incompetence of regulatory bodies or of individuals within those bodies is rather irrelevant to that. 

    Also, “no relevance” and “1%” of more than 100 billion revenue are contradictory. A billion Euro is rather a lot of money, when your business model isn’t working and you’re still losing the artists’ money hand over fist… 
    watto_cobra
  • Reply 11 of 11
    9secondkox29secondkox2 Posts: 2,727member
    It’s so right and fair and good when giant governments step into the private sector and dictate how much money you’re allowed to make with your products and services… even better when they kneecap you so that your competitors can make more….

    Oh wait…
     

    watto_cobra
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