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The EU has complained that it has broken the antitrust law by charging Apple high fees in its App Store and banning app developers from telling customers other ways to subscribe to their services.
The charges relate to the allegation made by Spotify music streaming service two years ago.
After investigating the complaint, EU Competition Commissioner Margrethe Vestager said Apple “deprives users of cheaper music streaming options and distorts competition”.
Apps that want to use Apple’s App Store, the only official way to reach the world 1 billion iPhones, they have to pay a 30 percent commission and accept a strict set of rules designed by Apple to ensure quality.
“The Commission’s preliminary view is that Apple’s rules distort competition in the music playback services market, increasing the costs of competing music playback app developers,” it says in a note on the case.
“This in turn leads to higher prices for consumers for in-app music subscriptions on iOS devices. In addition, Apple becomes the intermediary for all IAP (in-app purchases) transactions and assumes a billing relationship, as well as communications related to competitors.”
The case is the most notorious case of antitrust in Brussels today and is the first time European Union regulators have filed formal complaints against Apple.
It is likely that the case will take many years in the EU courts in Luxembourg and any verdict is likely to be appealed. If Apple is found to have violated EU law, it could face a fine of up to 10 percent of global turnover.
The move comes just days before the U.S.-led Epic game developer’s lawsuit, as Apple reported abuse of competition due to its App Store rules, and Apple comes in the same week it reported 27 percent of the year. annual increase in service sales, a division that includes the App Store.
Apple said: “Spotify has become the largest music subscription service in the world, and we’re proud of the role we played in it. Spotify doesn’t charge Apple more than 99% of its subscribers, and only pays a 15% commission through the App Store to other subscribers.
“At the heart of this case is Spotify’s request to be able to advertise alternative offers on its iOS app, a practice that no store in the world supports. Once again they want all the benefits of the App Store but don’t think they should pay anything for it. it is the opposite of being right. ”
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