The European Union is preparing to impose a significant fine on Apple, reportedly around $500 million, due to the tech giant's alleged anticompetitive behavior in the music streaming market. This move comes after Spotify filed a formal complaint with the EU commission back in 2019.
Restrictive App Store Policies
At the heart of the issue are Apple's anti-steering provisions, which restrict music streaming apps from informing users about alternative ways to subscribe to their services and avoid Apple's commission fees on in-app purchases. This has given Apple Music an unfair advantage over its third-party rivals, according to the EU.
Forced Commission Fees
The EU's investigation focuses specifically on the impact of these provisions on music streaming apps, highlighting how Apple's mandatory commission fees and restrictions on services have unfairly favored Apple Music. The regulator argues that this has stifled competition in the market, allowing Apple Music to dominate.
Alternative Payment Methods
While the forthcoming EU judgement won't force Apple to permit alternative in-app payment methods, it will require music streaming app developers to be able to freely link out to their website and allow users to subscribe online. This could potentially lead to lower prices for consumers, as they wouldn't be subject to Apple's commission fees.
A Shift in Policy
In 2022, Apple relaxed its anti-steering provisions slightly for "reader apps" like Netflix or Kindle, allowing them to include a single link out to their own websites for account management. Spotify is considered a reader app and falls under this rule. However, the EU investigation also considers the impact of Apple's behavior before these policy changes were implemented.
The Future of Fitness App Development
With the introduction of the Digital Market Act next month, Apple will be required to allow alternative payment methods in the EU. While this is a step forward, Spotify CEO Daniel Ek has described the terms as unworkable, highlighting the need for greater flexibility and competition in the market.
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