Apple and Spotify dispute, or will face nearly 500 million euros in EU fines
In 2019, Spotify filed a complaint against Apple for unfair competition.。Spotify accused Apple of using iOS and the App Store platform to boost its own profits, charging 30% Apple tax on developers in the App Store, causing companies such as Spotify to have to raise subscription fees。
Apple faces EU fine of nearly half a billion euros for alleged unfair competition。EU accuses Apple of suppressing music streaming rivals, including Spotify, on its platform。Apple accused of blocking competing music service from notifying users of cheaper alternatives outside its App Store。
In 2019, Spotify filed a complaint against Apple for unfair competition.。Spotify accused Apple of using iOS and the App Store platform to boost its own profits, charging 30% Apple tax on developers in the App Store, causing companies such as Spotify to have to raise subscription fees。
Restrictions in Apple's specifications result in Spotify not being able to encourage users to bypass the App Store to download software, to inform customers that there are cheaper ways to subscribe than the App Store, and to offer payment options other than Apple Pay.。As a result, Spotify had to accept Apple Pay and share its internal business strategy with Apple in order to be available on the App Store.。
Asked about the matter, Apple cited previous statements that the App Store had helped make Spotify the top music streaming service in Europe.。EU competition chief Margaret Vestager seeks to dismantle Big Tech's dominance of the bloc through fines and regulatory action。
Apple is also under pressure from individual EU member states.。In 2020, Apple was fined €1.1 billion in France for anti-competitive behaviour, although the fine was reduced to €3 after an appeal..7.2 billion euros。The EU investigation into Apple's App Store was triggered by Spotify's complaint nearly four years ago that it was forced to raise monthly subscription fees to cover costs associated with Apple's alleged monopoly on App Store operations。
Apple, on the other hand, will accept a settlement offer from the EU amid an EU investigation into its click-and-pay technology.。The decision comes after EU regulators raised formal concerns about Apple over allegations that limiting access to the technology amounted to an abuse of its market power.。
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