The European Commission fined Manzana With more than 1.8 billion euros To abuse of dominant market position regarding distribution streaming music apps between users of the iOS operating system through its App Store. The technology company violated community antitrust rules by imposing restrictions on app developers that prevented them from informing users about alternative and cheaper services available.
In particular, the European body’s investigation found that the approach developed by Apple prohibits developers of streaming music services. inform iOS users in their own apps about subscription prices available outside the application.
Likewise, it was prohibited from informing users of price differences between subscriptions sold through Apple’s own app and subscriptions available elsewhere.
In addition, Apple also limited the inclusion of links in their apps to direct users to the app developer’s website to purchase alternative subscriptions. Developers were also not allowed to contact their newly acquired users, such as via email, to inform them of alternative pricing options after account creation.
“These anti-targeting provisions are neither necessary nor proportionate to protecting Apple’s commercial interests in the App Store on Apple mobile devices and adversely affect the interests of iOS users who are unable to make informed decisions and effective information about where and how to purchase a subscription to the streaming service. transfer music for use on your device“, explains the European Commission in a statement.
In this regard, the authority of the community notes that the company’s practice, carried out for almost ten years, would lead many users to pay a significantly higher price for your subscriptions due to the high fees charged from developers and passed on to consumers. They would also cause non-economic damage in the form of a poor user experience.
For all this, the Commission imposed a fine of more than 1.8 billion euros on the multinational corporation. took into account the duration and seriousness of the violation, and Apple’s overall turnover and market capitalization, and which it considers necessary to deter and prevent recurrence of the offence.
Apple’s answer
Given the sanctions imposed by the European Commission, Apple issued a statement criticizing the movement and defending its practices. Consider that the body has accepted decision despite lack of any evidence trustworthy with respect to consumer harm and neglect”the realities of a thriving, competitive and fast-growing market“
He also did not miss the opportunity to bring charges against his Spotify’s main competitor who does he think “This decision’s main advocate (and biggest beneficiary)” The technology company said the platform has met with the European Commission more than 65 times over the past eight years and that it has a 56% share of the music streaming market in Europe.
“Most of Spotify’s success comes from the App Store.”
“You pay Apple nothing for the services that have helped it become one of the most recognizable brands in the world. Much of its success is due to the App Store and all the tools and technologies Spotify uses to create, update and distribute its apps to Apple users around the world.“, explains Apple. In this sense, he points out that Spotify, instead of selling subscriptions in its app, sells them on its website. “And Apple doesn’t charge a fee on these purchases.“, he states.
The company emphasized that currently There are only two circumstances under which a developer listed on the App Store will pay Apple a fee.– When a user purchases a paid app from the App Store, or when they purchase a digital product or service within an app, such as a subscription or upgrade in a game.
Apple Blames Spotify for “free is not enough“and who wants”rewrite the App Store rules to benefit them even more” “Spotify wants to bend the rules in its favor by including subscription costs in its app without using the App Store’s in-app purchase system. They want to use Apple’s tools and technologies, distribute them on the App Store, and benefit from the trust we’ve built among users, without paying Apple anything for it.
In short, Spotify wants more“, the company reports.
Apple accuses the Commission of supporting the European company
The company also brought charges against the European Commission, noting that the decision is part of efforts to ensure compliance with the Digital Markets Act (DMA) before it comes into full force. “The reality is that European consumers have more options than ever. Ironically, today’s decision in the name of competition only cements the dominant position of a successful European company that is the undisputed leader in the digital music market.“, they assure.
With all this, Apple announced that appeals the decision of the Commission, because they believe it is not supported by the facts and does not take into account the company’s years of helping markets thrive, competition and innovation.
Spotify’s answer
For my part, since Spotify celebrates Commission decision because they understand that it promotes a more open Internet for consumers and sends a powerful message about how “No company, not even a monopoly like Apple, can abuse its power to control how other companies interact with their customers.“
The platform ensures that the practice Apple was deprived of the ability to communicate with its own users about how to update the application or the cost of subscriptions, promotions, discounts and other benefits. Some rules he notes Apple Music is not required to follow.
However, the Swedish company expect the solution to spread also to other markets. “While we’re glad this case brings some justice, it doesn’t correct Apple’s poor behavior towards developers beyond streaming music in other markets around the world.“, they assure. “Our work will not be complete until we achieve a truly fair digital marketplace everywhere, and our commitment to helping make this a reality will remain unwavering.“