EU's dominant music service wants Apple to be penalized for dominance

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AppleInsiderAppleInsider
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in Apple Music

The European Union's dominant music service, Spotify, is coming for Apple once again, hoping to hit it where it hurts -- the wallet.

Spotify logo and Apple Music against a split purple and gradient backdrop.
Spotify hopes EU will fine Apple for violating DMA



Spotify and Apple haven't been on the best of terms in, well, ever, and that doesn't seem to be changing anytime soon. Now, Spotify's CEO hopes to sway regulators to fine Apple over alleged noncompliance with the Digital Markets Act (DMA).

"It is time for Europe to show that we are going to enforce the law that's already been passed," Spotify CEO Daniel Ek said in an interview with Bloomberg. He went on to add that crackdowns on Apple's conduct had also become a focus for US regulators.

Ek claims that Apple does not do enough to comply with the DMA. He said Apple uses a "well-established pattern of delaying and stalling."

Specifically, Apple is under investigation for violating anti-steering rules concerning the App Store, third-party browser support, and the new fee structure put in place for third-party app marketplaces. The probe was launched in March of 2024.

If found guilty of noncompliance, EU regulators could levy fines of up to 10% of Apple's global annual revenue. Teresa Ribera, the EU's competition chief, has said the decision will be announced in March.

Apple, for its part, has maintained that its done enough to comply with DMA law. It hasn't done so quietly, though, as it published a whitepaper detailing the risks of third-party app stores. It then published another whitepaper addressing its concerns regarding the EU's interoperability laws.

This isn't the first time that Ek has attempted to goad regulators into fining Apple, either. Back in 2019, Spotify told the EU that Apple was abusing its monopoly by forcing developers to use the App Store's payment system. It alleged that Apple was violating the EU's anti-steering measures.

Spotify said Apple had "muzzled Spotify and other music streaming services" by "denying [them] the ability to communicate with [customers] about how to upgrade and the price of subscriptions, promotions, discounts, or numerous other perks."

As a result, the EU levied a fine of $1.95 billion against Apple in 2024.

Apple Music is either the third or fourth largest streamer in the European Union, with about half the market share of the leader. That leader, Spotify, holds the lead position with about 56% of the European streaming market.



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Comments

  • Reply 1 of 20
    TravisVtravisv Posts: 25member
    and here lays a problem that the EU still hasn't come to grips with and will eventually with the Trump Administration. The more you fine a company such as Apple the harsher the penalty from the Administration. Canada and France are going to find out in the not to distant future that imposing "digital services taxes on American companies is frowned on by Trump.
    williamlondonthedbasphericwatto_cobra
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  • Reply 2 of 20
    Leo2geoleo2geo Posts: 4member
     Not a fan of trump, but it would be great if he would weigh in on the nasty EU and push back on their attacks on US companies. Ban Spotify, bury them with tariffs, put the EU in their place.
    iOS_Guy80thedbatiredskillsForumPostwatto_cobra
     3Likes 2Dislikes 0Informatives
  • Reply 3 of 20
    randominternetpersonrandominternetperson Posts: 3,195member
    Leo2geo said:
     Not a fan of trump, but it would be great if he would weigh in on the nasty EU and push back on their attacks on US companies. Ban Spotify, bury them with tariffs, put the EU in their place.
    He has already started weighing in.
    watto_cobra
     1Like 0Dislikes 0Informatives
  • Reply 4 of 20
    macxpressmacxpress Posts: 5,979member
    Spotify just needs to die. Or they need a new person in charge who can actually try and grow the company and stop blaming everyone else for their shitty business models that aren't working and never will. 
    shrave10lotonesgrandact73ForumPostwatto_cobra
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  • Reply 5 of 20
    davidlewis54davidlewis54 Posts: 137member
    As the headline says, if Spotify is the dominant provider in the EU so it can hardly complain about Apple Music dominance.

    We all have a choice which service we use so there’s no need for any external pressure.   If you want to build your company provide a reason why customers should buy from you.

    It’s just nonsense and noise and just another attempt by companies to blame Apple for their incompetence.
    shrave10lotonesForumPostwatto_cobra
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  • Reply 6 of 20
    NotSoMuchnotsomuch Posts: 46member
    Just slap 25% tariff on imported audio and video from US. providers and producers. 🤔 -That will be the next thing MAGA will do so everything is made in America. 
    watto_cobra
     1Like 0Dislikes 0Informatives
  • Reply 7 of 20
    timmilleatimmillea Posts: 280member
    I am hardly a fan of the EU, it has over-reached in all sorts of directions, but their regulations are the result of very intelligent committees working for years on fairness and open-competition. Had the EU not had its regulatory powers, the World would now be carved up between Microsoft and Tesla. Apple would not exist. 


    sphericlipnorthwilliamlondontiredskillswatto_cobra
     2Likes 3Dislikes 0Informatives
  • Reply 8 of 20
    Dougie.Sdougie.s Posts: 45member
    "It is time for Europe to show that we are going to enforce the law that's already been passed“

    Shouldn’t that be “It is time for Spotify to show that we are going to implement AirPlay2 and other APIs that’s already been made available to use”?
    watto_cobra
     1Like 0Dislikes 0Informatives
  • Reply 9 of 20
    avon b7avon b7 Posts: 8,224member
    davidlewis54 said:
    As the headline says, if Spotify is the dominant provider in the EU so it can hardly complain about Apple Music dominance.

    We all have a choice which service we use so there’s no need for any external pressure.   If you want to build your company provide a reason why customers should buy from you.

    It’s just nonsense and noise and just another attempt by companies to blame Apple for their incompetence.
    Is it about dominance or abuse of dominance?

    Does the headline fit in that context? 

    If there is no need for external pressure then why did Apple need anti-steering rules? Why was it found to be not complying with the regulations?

    Better to wait and see if Apple's changes bring it into compliance or not. 

    IMO, they don't but it's not my call. 
    sphericwatto_cobra
     1Like 1Dislike 0Informatives
  • Reply 10 of 20
    sphericspheric Posts: 2,747member
    TravisV said:
    and here lays a problem that the EU still hasn't come to grips with and will eventually with the Trump Administration. The more you fine a company such as Apple the harsher the penalty from the Administration. Canada and France are going to find out in the not to distant future that imposing "digital services taxes on American companies is frowned on by Trump.
    You assume — wrongly — that Tr*mp will push for anyone’s interests other than his own and his billionaire cronies’. 

    He doesn’t give a shit about Apple unless it makes him look bad. In the current climate, if Apple suffers, he’ll happily point a finger and laugh at them, and probably blame it on DEI or some other bullshit. 
    lipnorthmuthuk_vanalingamlotonestiredskillsForumPostwatto_cobra
     6Likes 0Dislikes 0Informatives
  • Reply 11 of 20
    grandact73grandact73 Posts: 75member
    I personally don't know a single person that uses Apple Music over Spotify.
    williamlondondanoxtiredskillsWesley_Hilliardwatto_cobra
     0Likes 5Dislikes 0Informatives
  • Reply 12 of 20
    williamlondonwilliamlondon Posts: 1,452member
    grandact73 said:
    I personally don't know a single person that uses Apple Music over Spotify.
    Always there promoting the most stupid things to say.
    ihatescreennamesForumPostwatto_cobra
     3Likes 0Dislikes 0Informatives
  • Reply 13 of 20
    aderutteraderutter Posts: 635member
    grandact73 said:
    I personally don't know a single person that uses Apple Music over Spotify.
    I don’t know a single person that uses Spotify, except one child that has no money. 
    ihatescreennameswatto_cobra
     2Likes 0Dislikes 0Informatives
  • Reply 14 of 20
    godofbiscuitssfgodofbiscuitssf Posts: 163member
    TravisV said:
    and here lays a problem that the EU still hasn't come to grips with and will eventually with the Trump Administration. The more you fine a company such as Apple the harsher the penalty from the Administration. Canada and France are going to find out in the not to distant future that imposing "digital services taxes on American companies is frowned on by Trump.
    You think anti-steering regulations are anti-American?
    watto_cobra
     1Like 0Dislikes 0Informatives
  • Reply 15 of 20
    godofbiscuitssfgodofbiscuitssf Posts: 163member

    davidlewis54 said:
    As the headline says, if Spotify is the dominant provider in the EU so it can hardly complain about Apple Music dominance.

    We all have a choice which service we use so there’s no need for any external pressure.   If you want to build your company provide a reason why customers should buy from you.

    It’s just nonsense and noise and just another attempt by companies to blame Apple for their incompetence.
    The US has similar rules about harm, regardless of how much profit is made "anyway".  Trump was found liable for financial fraud in NY state, even though they paid back the loans they'd obtained and even though the banks made money from the interest on those loans.  The banks still suffered damages because fraud was still committed.  So don't blame the EU for something "extraordinary" or Spotify for pointing fingers.
    muthuk_vanalingamsphericwatto_cobra
     1Like 1Dislike 1Informative
  • Reply 16 of 20
    davidwdavidw Posts: 2,151member
    avon b7 said:
    As the headline says, if Spotify is the dominant provider in the EU so it can hardly complain about Apple Music dominance.

    We all have a choice which service we use so there’s no need for any external pressure.   If you want to build your company provide a reason why customers should buy from you.

    It’s just nonsense and noise and just another attempt by companies to blame Apple for their incompetence.
    Is it about dominance or abuse of dominance?

    Does the headline fit in that context? 

    If there is no need for external pressure then why did Apple need anti-steering rules? Why was it found to be not complying with the regulations?

    Better to wait and see if Apple's changes bring it into compliance or not. 

    IMO, they don't but it's not my call. 

    You're right, it's about "abuse" of dominance. But how can Apple be abusing something they don't have? Spotify is the one abusing their dominate position (not only in the EU with 54% market share but Worldwide with 32%)  in order to sway EU politicians into thinking that Apple is not complying with the DMA because Spotify is having a hard time trying to innovate, in order to become profitable. Spotify recently had to rely on raising prices, laying off employees and reducing royalties payout to the artists, in order to report their first annual profit. This after nearly 20 years in the business and being the dominate player for all of those years. (And the first 9 years without having to compete with Apple Music.) This shouldn't be happening because the DMA should be giving EU companies a home court advantage. Not just an attempt to level the playing field.   


    However, from the CEO, perspective, Spotify has been very profitable.


    IMO- Spotify CEO aught to be spending his time and resources on making sure bills like this don't pass, anywhere they do business. Something that will actually negatively affect Spotify bottom line. Otherwise, it's lights out for Spotify and it won't be because of Apple "dominance". It will be because the likes of Apple, Google and Amazon can afford to pay artist $.01 per stream without raising paid subscription prices, as they have others means to subsidize their music streaming services.


    We often hear about Apple DNA


    but if these are any indication of Spotify DNA, any Apple "dominance" is not Spotify's problem.





    Ek and Epic Games CEO Sweeney, are cut from the same cloth in that they are biggest CEO crybabies when it comes to demanding that the government help them compete with companies that actually innovates, without having to innovate.










    ForumPost
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  • Reply 17 of 20
    avon b7avon b7 Posts: 8,224member
    davidw said:
    avon b7 said:
    As the headline says, if Spotify is the dominant provider in the EU so it can hardly complain about Apple Music dominance.

    We all have a choice which service we use so there’s no need for any external pressure.   If you want to build your company provide a reason why customers should buy from you.

    It’s just nonsense and noise and just another attempt by companies to blame Apple for their incompetence.
    Is it about dominance or abuse of dominance?

    Does the headline fit in that context? 

    If there is no need for external pressure then why did Apple need anti-steering rules? Why was it found to be not complying with the regulations?

    Better to wait and see if Apple's changes bring it into compliance or not. 

    IMO, they don't but it's not my call. 

    You're right, it's about "abuse" of dominance. But how can Apple be abusing something they don't have? Spotify is the one abusing their dominate position (not only in the EU with 54% market share but Worldwide with 32%)  in order to sway EU politicians into thinking that Apple is not complying with the DMA because Spotify is having a hard time trying to innovate, in order to become profitable. Spotify recently had to rely on raising prices, laying off employees and reducing royalties payout to the artists, in order to report their first annual profit. This after nearly 20 years in the business and being the dominate player for all of those years. (And the first 9 years without having to compete with Apple Music.) This shouldn't be happening because the DMA should be giving EU companies a home court advantage. Not just an attempt to level the playing field.   


    However, from the CEO, perspective, Spotify has been very profitable.


    IMO- Spotify CEO aught to be spending his time and resources on making sure bills like this don't pass, anywhere they do business. Something that will actually negatively affect Spotify bottom line. Otherwise, it's lights out for Spotify and it won't be because of Apple "dominance". It will be because the likes of Apple, Google and Amazon can afford to pay artist $.01 per stream without raising paid subscription prices, as they have others means to subsidize their music streaming services.


    We often hear about Apple DNA


    but if these are any indication of Spotify DNA, any Apple "dominance" is not Spotify's problem.





    Ek and Epic Games CEO Sweeney, are cut from the same cloth in that they are biggest CEO crybabies when it comes to demanding that the government help them compete with companies that actually innovates, without having to innovate.










    If Apple hadn't abused its dominance this complaint would never have been raised in the first place. It was based on something real and Apple was found to be abusing its position. 

    Everyone has a right to make their opinions heard. There is no 'sway', only an investigation to determine whether Apple has complied to sufficient degree or not. We will find out this month. 
    ForumPostwatto_cobra
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  • Reply 18 of 20
    sphericspheric Posts: 2,747member
    davidw said:
    You're right, it's about "abuse" of dominance. 






    Antitrust is not about abusing market dominance. It is about unfairly abusing market position. 

    There is no requirement to be a monopoly, nor to be the single "dominant" company in a market. 

    One simply needs to be big enough to be able to abuse market clout. 

    We're used to Apple Insider's editorialising-posing-as-"reporting" being unaware of this fact, but they're a lost cause.  

    It is a point worth considering if you're going to argue about antitrust, though. 
    muthuk_vanalingamwatto_cobra
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  • Reply 19 of 20
    jfreedle2jfreedle2 Posts: 23member
    The EU government needs to get out of these kinds of issues. Let the market forces deal with these kinds of licensing disagreements. Apple is the only entity that should decide what is provided on their platform as they designed the software and hardware. If you want something else, then choose a lessor device. Spotify and the EU government has no say in how Apple designs or build their products.
    tiredskillswatto_cobraneoncat
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  • Reply 20 of 20
    avon b7avon b7 Posts: 8,224member
    jfreedle2 said:
    The EU government needs to get out of these kinds of issues. Let the market forces deal with these kinds of licensing disagreements. Apple is the only entity that should decide what is provided on their platform as they designed the software and hardware. If you want something else, then choose a lessor device. Spotify and the EU government has no say in how Apple designs or build their products.
    "The European Commission has fined Apple over €1.8 billion for abusing its dominant position on the market for the distribution of music streaming apps to iPhone and iPad users (‘iOS users') through its App Store."

    https://ec.europa.eu/commission/presscorner/detail/en/ip_24_1161

    If it weren't for the EU, what kind of market forces would have changed the situation if market forces are themselves being stifled? 

    Apple is free to decide what it includes on its hardware but the minute it decides to dip a toe into open waters (third party apps and stores, NFC, Wallets...) which include outside parties, it has to play by different rules. 
    muthuk_vanalingamwatto_cobra
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