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Apple faces antitrust action in EU

by on13 March 2019


Spotify files EU complaint against Apple's 'anticompetitive' App Store rules

The fruity cargo cult Apple is finding itself in antitrust hot water in the European Union.

Music streaming outfit Spotify has moaned to the European Commission claiming that Apple is stifling competition "acting as both a player and referee to deliberately disadvantage other app developers".

Writing in his blog, Spotify CEO Daniel Ek argues that Apple is giving itself an "unfair advantage" through its 30 percent "Apple Tax", which sees the firm charging a 30 percent fee toward any sales through its App Store, including subscription services.

"Apple requires that Spotify and other digital services pay a 30 percent tax on purchases made through Apple's payment system, including upgrading from our free to our premium service," Ek said.

He said that if Spotify pays Apple’s tax it would be forced to artificially inflate the price of its premium membership well above the price of Apple music.

However, if Spotify ditched Apple's payment system. Apple then applies a series of technical and experience-limiting restrictions on Spotify.

Apparently, when Spotify stopped using Apple's in-app payment system in the past after it was forced to hike the prices of its premium service, Apple blocked "experience-enhancing" updates, locked Spotify out of services such as Siri, HomePod, and Apple Watch and, in some cases, stopped Spotify from sending emails to customers who use Apple devices.

Spotify wants the same treatment as other App Store apps like Uber and Deliveroo, "who aren't subject to the Apple tax and don't have the same problems".

Ek said that that should compete daily on merit, not based on who owns the App Store.

“We should all be subject to the same fair set of rules and restrictions—including Apple Music”, he said.

Consumers should have a real choice of payment systems and not be locked down or forced to use Apple’s discriminatory tariffs.

App stores should not be allowed to control the communications between services and users, including placing unfair restrictions on marketing and promotions that benefit consumers, he added.

“Let me be clear that this is not a Spotify-versus-Apple issue. We want the same fair rules for companies young and old, large and small. It is about supporting and nurturing the healthy ecosystem that made our two companies successful in the first place.”

Spotify has long had beef with Apple's "anticompetitive" App Store restrictions; back in 2015, the firm filed a complaint alleging that Apple is trying to use its influence and power in the industry to convince music labels to put an end to the free streaming services offered by the likes of Spotify

Last modified on 13 March 2019
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