Apple is hitting back at Spotify over an ongoing competition case filed in the EU, which could lead to significant fines if Apple is found guilty.
The federation has completed its investigation into allegations of anti-competitive behavior by Apple regarding the App Store rules for the music streaming service and is expected to levy a fine of €500m (£425m). Apple accused Spotify of seeking access to its tools without paying for them.
Spotify, based in Stockholm, lodged a complaint with the EU in 2019, alleging that the App Store rules restrict choice and competition by imposing a 30% fee on purchases, including music streaming subscriptions. Spotify argued that this fee gives Apple an unfair advantage over its own competing Apple Music streaming service.
Apple responded by stating that Spotify does not offer subscriptions through the App Store, hence does not pay any fees to Apple in the EU.
The European Commission, after a lengthy investigation, found no evidence of consumer harm or anti-competitive behavior by Apple in this market. Apple criticized EU regulators for the prolonged investigation.
Spotify, with over 50% market share in Europe, has access to various advertising channels outside of the App Store to inform users how to subscribe, including email marketing and social media.
Apple also stated that the investigation may further solidify Spotify’s dominant position in the market, rather than fostering competition.
When Spotify filed its complaint in 2019, founder Daniel Ek accused Apple of implementing rules in the App Store that suppress innovation and limit choices.
Source: www.theguardian.com
