April 17, 2024

Taylor Daily Press

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Apple risks a European fine of half a billion euros over complaints from Spotify |  apple

Apple risks a European fine of half a billion euros over complaints from Spotify | apple

American technology company Apple risks a 500 million euro fine from the European Union. The British business newspaper Financial Times wrote this based on informed sources. In 2019, the European Commission launched an investigation following complaints from rival music services, including Spotify, which believes Apple is holding back rivals and favoring its own services. The fine is expected to be announced early next month. This will be the first European fine ever imposed by Apple for violating competition rules.

Swedish music streaming company Spotify filed a complaint with the European Commission against Apple in 2019. Spotify believes Apple is violating competition rules by imposing too high requirements on competing music services. For example, the company complains, among other things, about the requirement that app makers must use the App Store's payment system when selling services through the store, so Apple receives a 30 percent fee in the first year and 15 percent in the first year. The following year after years. Apple's own services are not subject to this preference. Additionally, Spotify is not allowed to inform customers in the App Store that there is a cheaper way to join the streaming service through its own site.

Spotify claims that it was forced to raise the prices of its monthly subscriptions in order to cover the costs resulting from the rules imposed by Apple on the use of the App Store.

There is no Spotify without the App Store

Apple, like the European Commission, has decided not to respond yet. In 2019, there was a response to Spotify's claims on Apple's website. The company claimed, among other things, that Spotify wouldn't have become so big without the App Store. In addition, general rules that apply to all services are also explained. “Spotify wants all the benefits of a free app without actually being free,” she said.

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The fine should show the sector that the authority is serious. Google has also previously received fines totaling more than 8 billion euros.

Digital Markets Law

The Digital Markets Act (DMA) will come into force on March 7. This is a European law that aims to make the competitive digital market fairer and limit the power of big technology companies. The DMA makes it illegal for more powerful companies to favor their own services by different rules. For example, combining personal data from different services is prohibited. Apple announced some changes to the iOS operating system, Safari, and the App Store at the end of last month, so that applications comply with the new regulations.