Brussels, Belgium – The European Commission has levied a significant €1.8 billion fine against tech giant Apple for engaging in anti-competitive behavior targeting rival streaming music services in the European Union. In response to the ruling, Spotify, a leading streaming music service, has applauded the decision of the European Commission.
The investigation into Apple’s practices was initiated following a complaint filed by Spotify in 2019 over alleged unfair App Store policies. Spotify has been vocal about Apple’s imposition of a 30 percent fee, which it claims puts the service at a disadvantage compared to Apple Music.
In a recent blog post, Spotify highlighted that the European Commission’s decision sends a clear message that Apple’s actions in limiting communication with consumers are unlawful. The Commission found that Apple’s rules restricted Spotify and other services from directly informing users about various benefits, promotions, discounts, and subscription options within the app.
While the scope of the investigation initially focused on App Store fees and in-app purchases, it eventually centered around Apple’s anti-steering rules, which prevent apps like Spotify from informing customers about lower prices available outside the app. The European Commission deemed these restrictions as violating EU antitrust rules, leading to inflated prices for music streaming subscriptions.
Spotify has emphasized that Apple has continuously disregarded laws and court rulings in various markets, and it intends to push back against Apple’s practices until a fair digital marketplace is established. As part of the ruling, Apple has been instructed to remove anti-steering provisions and refrain from repeating similar practices in the future. However, Apple has announced its intention to appeal the decision, citing a bias influenced by Spotify’s complaints.
In response, Spotify anticipates releasing an app outside of the App Store, with support for alternative app marketplaces expected in the EU. Despite these upcoming changes, Spotify criticizes Apple’s compliance with the Digital Markets Act in Europe as inadequate and labels the proposed alterations as a sham.
Overall, the European Commission’s ruling against Apple underscores the ongoing battle between tech giants and digital services, with Spotify leading the charge for a fair and competitive marketplace.