The European Commission has charged Apple with breaching antitrust rules, citing a complaint filed by music streaming service Spotify. The commission alleges that Apple’s control over the iOS app ecosystem gives it an unfair advantage and harms competition.
Background:
Spotify has long accused Apple of engaging in anti-competitive practices, including charging a 30% commission on sales made through its App Store and restricting access to customer data. The music streaming service claims that these restrictions have hindered its growth and competitiveness on the iOS platform.
Commission’s Allegations:
The European Commission has leveled several allegations against Apple:
- Abuse of dominance: The commission alleges that Apple’s control over the App Store gives it an unfair advantage in terms of pricing, distribution, and customer data.
- Unfair restrictions on access to customers: The commission claims that Apple’s rules restrict Spotify’s ability to communicate directly with its customers on iOS devices, placing a significant barrier to entry for competitors.
- Favoring own services: The commission alleges that Apple has favoritism towards its own music streaming service, Apple Music, by promoting it over competing services like Spotify.
Spotify’s Response:
Spotify has responded to the allegations, stating:
"Apple controls our access to its customers and gives us one of two bad options: either we deliver a poor user experience where we can’t directly communicate how to buy or subscribe to Spotify on iPhones, or we accept a 30% cost disadvantage against our biggest competitor. This is not a level playing field."
Impact on Apple and the App Store:
The commission’s allegations could have significant implications for Apple and its App Store business model. If found guilty of antitrust breaches, Apple may face fines, changes to its App Store policies, or even loss of control over certain aspects of the iOS ecosystem.
Timeline:
- The European Commission has announced plans to make a decision on the case in early March.
- Spotify has been working closely with regulators throughout the investigation and has met with them more than 65 times since it began.
The outcome of this case will have far-reaching implications for Apple, Spotify, and other tech companies operating in the iOS ecosystem. It will also shape the future of antitrust regulations and competition policy in Europe.
