Apple Inc. to face allegation for distorting competition in the EU
European Commission stated Apple Inc. has misused its position as a dominant player in the music streaming apps
In a recent interview, the European Commission stated Apple Inc. has misused its position as a dominant player in the music streaming apps through its App Store. The EU stated that Apple Inc. has a considerable market share in the distribution of music streaming apps to Apple customers. As a result, Apple Inc. enjoys a monopoly. The European Commission also referred to as the EU’s executive arm, had initiated an antitrust investigation into the Apple App Store the previous year, ever since the music streaming giant Spotify lodged a complaint in 2019 regarding Apple’s license agreements. The agreement states that app developers are expected to pay a 30% commission on all subscription fees coming from the Apple App Store.
App developers are unable to provide users an alternative way to purchase their apps from elsewhere which is yet another issue the EU stated it was concerned with.
The European Commission has already informed Apple Inc. of its preliminary actions and opinions that Apple has tried to distort competition in the music streaming market as it misusing its position in the market for the distribution of apps through its App Store. In response to this, Apple Inc. stated that the EU’s case was the opposing to fair competition. Spotify holds the largest music subscription base in the world, and Apple takes proud in helping Spotify reach that accolade. They want all of the benefits from the Apple App Store however they don’t give a thought to pay anything in return.
Spotify had to welcome the news on this Friday. Chief Legal Officer of Spotify stated that the European Commission’s Statement of Objections is an important step toward holding Apple Inc. accountable for its misuse of power, thereby ensuring meaningful choices for our consumers and a playing field for our developers.