Apple faces EU antitrust charge again because of Spotify’s complaint. Apple is being sued, and the accusations are part of an EU investigation into Spotify’s claims of anti-competitive behavior in the music streaming market, and they imply that the EU is building its case against Apple as big tech firm faces increasing attention across the continent.
In 2019, Spotify filed a complaint with the European Commission, alleging that Apple is attempting to stifle competition and block innovation in violation of EU antitrust rules at the user’s expense. According to the complaint, the company is accused of “acting as both a player and referee to deliberately disadvantage other app developers,” according to the complaint.
Apple vs Spotify: Apple faces EU antitrust charge
Spotify noted that Apple’s 30 percent commission on App Store purchases, including in-app subscriptions, drives the music streaming service to charge current users $12.99 per month instead of the usual $9.99.
Spotify cannot compete with Apple Music’s regular $9.99 per month price on the App Store, it’s been claimed, giving Apple an “unfair edge.” If Spotify refuses to take payments through the App Store, Apple is then accused of implementing a series of technical and experience-limiting restrictions. According to reports, Apple is “keeping Spotify and other competitors out of Apple services like Siri, HomePod, and Apple Watch,” making Apple Music a more appealing option for users.
According to the investigation, Apple has broken EU competition rules since April 2021. Apple rejected allegations of anti-competitive behavior, stating that its rival was distorting its commercial goals.
As per a source familiar with the matter, The European Commission now intends to add further antitrust allegations to a supplementary statement of objections, which are often used when an EU competition enforcer updates parts of its case or obtains new information. According to reports, the additional charges will be levied in the coming weeks.
Under the Digital Markets Act (DMA), a new EU tech law passed in last month, such practices are now prohibited. On the other hand, Apple and other US technology firms targeted by the rules will have a few two years before enforcement begins. The regulations will almost certainly be enforced against Apple in the first quarter of 2024. We will let you know about this courtroom drama series with another “Apple is being sued” news article whenever it happens.
“This is why anti-trust litigation is so crucial”, says attorney Damien Geradin of Geradin Partners, who is representing numerous app developers in other cases against Apple. Companies found violating EU anti-trust laws face fines of up to 10% of their global turnover and orders to cease anti-competitive practices.
Apple is also being investigated by the European Commission over its e-book and Apple Pay platforms.
