The European Union fined Apple $1.8 billion on charges of violating competition rules for music streaming services. The Cupertino company is in fact adopting unfair commercial conditions that go against EU rules, with Apple prohibiting third-party music streaming app developers from being able to inform users about alternative services to Apple Music and perhaps more convenient, such as Spotify or Amazon Music.
Apple fined by EU: investigation prompted by Spotify
The investigation started following a complaint from Spotify, evidently tired of Apple's behavior. Initially, the fine was rumored to be around $500 million, but the EU later revealed that the real figure was almost four times higher. “For a decade, Apple has abused its dominant position in the streaming market music through the App Store,” explains Margrethe Vestager, Vice President of the European Commission.
The company would do this by “preventing developers from informing consumers about alternative and cheaper music services than those available outside the Apple ecosystem.” It's about a unfair and illegal commercial practice according to the Antitrust rules of the European Union. The only possible outcome is therefore a fine, amounting to over 1.8 billion euros. Obviously, Apple's response to the European Commission was not lacking, defining the decision as incorrect and taken despite the EC having shown a certain inability to demonstrate the evidence to support the alleged damage to consumers.
“The decision was taken despite the European Commission's failure to provide credible evidence to the detriment of consumers and ignores the reality of a thriving, competitive and rapidly growing market. The main supporter of this decision – and main beneficiary – is Spotify. Spotify has the largest music streaming application in the world and has met with the European Commission 65 times during this investigation.”
“Today Spotify holds 56% of the European music streaming market – more than double its closest rival – and pays nothing to Apple for the services that have helped make it one of the most famous brands in the world,” Apple continues, adding that Much of Spotify's success is the result of the success of its devices. Spotify is in fact available by subscription via a proprietary website and consequently the Cupertino company does not collect any money from its existence.
As if that wasn't enough, Apple guarantees the correct functioning of Spotify on devices such as Car Play, AirPlay, Siri and the various Watches, all still at the company's expense. Apple also wanted to reiterate that at present, Spotify isn't Apple Music's only rival. There are alternatives on the market such as Amazon, Google, Deezer e SoundCloudbut no one can compete with the Swedish giant.
Despite Apple's statements, the European Commission nevertheless opened an investigation for abuse of a dominant position. The company had attempted to ease pressure from the EU by allowing competitors to warn users about its services. The fine comes three days after the entry into force of the Digital Markets Act, the new European Commission regulation which will require Big Tech to allow developers to share offer details, promotions and more convenient payment methods to consumers.
Source: The sun 24 hours