Apple plays a “cat and mouse” game with Europe

Margrethe Vestager, Commissioner of the European Commission, said the initial view was that Apple had distorted competition in the music streaming market, by abusing its dominant position and abusing its role of “gatekeeper”. for 1.8 million apps in its App Store.

Apple accused of violating European rules

The commissioner said it was unfair for app developers to pay up to 30% commission on sales and have to agree to Apple’s strict rules if they wanted to sell their apps. own over 1 billion iPhones and 500 million iPads in the world.

“Apple charges a 30% commission on all purchases across its network,” Vestager said. “This means that music streaming providers can’t sell subscriptions on their apps, without paying Apple a 30 percent fee.

“According to our research, Apple has limited the ability of app developers to notify iPad or iPhone users of available and cheaper alternative subscriptions,” she added.

“In fact, to avoid paying 30% commissions, some music streaming service providers have decided to stop offering paid subscriptions in their apps. This is what Spotify decided to do. available in 2016. Since then, customers can download the Spotify app in the Apple App Store, but they cannot purchase any of Spotify’s premium services.”

Vestager said the commission’s two-year investigation found that users are “very loyal” and rarely switch, and that Apple’s devices and software are said to form an “ecosystem” self-contained”, in which the company controls every aspect of the user experience.

As a result, the commission believes that Apple device users are paying significantly higher prices for their music subscription services. “By placing strict rules on the App store, which have disadvantaged competing music streaming services, Apple deprives users of cheaper music streaming options,” Vestager said. and distort fair competition. This is done by charging high commissions on each App Store transaction from competitors, and by prohibiting them from informing customers of alternative subscription options. Or is it cheaper?”

“We’re concerned that Apple’s rules negatively impact their competitors by increasing costs, reducing their profit margins, and their appeal on the App Store platform,” Vestager said. .

Vestager’s release of the above information is the first formal protest in an investigation into suspected Apple violating EU antitrust rules, which is likely to take years to pass through the courts. court in Luxembourg.

“Ensuring the iOS platform works fairly is an urgent task with far-reaching implications,” said Spotify’s head of global affairs and chief legal officer, Horacio Gutierrez.

Spotify founder and CEO Daniel Ek praised the European Commission’s decision: “Today is a big day. Fairness is key to competition,” he wrote on Twitter. “With the @EU_Commission Statement of Objection, we are one step closer to creating a level playing field, which is so important for the entire ecosystem of European app developers.”

“The European Commission’s statement of objection is an important step toward holding Apple accountable for its anti-competitive behavior, ensuring meaningful choice for all consumers, and creating a level playing field.” Equal play for app developers”.

“If the case is cleared up and Apple loses the lawsuit, the EU can fine up to 10% of Apple’s global revenue – equivalent to $ 27 billion,” according to Reuters.

In response, Apple disagrees with the European Commission’s allegations and will fight them.