US tech firm criticizes streamer ahead of EU ruling for challenging its App Store rules
Apple has criticized Spotify for its ongoing EU competition complaint, which could result in a substantial fine for the tech company if it’s found guilty. Following reports that the EU has completed its investigation into Spotify’s allegations of anti-competitive behavior by Apple regarding its App Store rules, including the potential for a €500m (£425m) fine, Apple has accused Spotify of seeking unrestricted access to its tools without payment.
Spotify, headquartered in Stockholm, lodged a complaint with the EU in 2019, alleging that Apple’s App Store regulations restrict choice and competition by imposing a 30% fee on transactions, including music streaming subscriptions.
Spotify contended that Apple’s 30% fee, which Apple Music doesn’t pay, unfairly favors Apple. Spotify also argued that Apple’s rules prohibit informing users about cheaper subscription options outside the App Store. Apple responded, stating that Spotify doesn’t offer App Store subscriptions and thus doesn’t pay commissions in the EU.
Apple stated, “We’re pleased to support the success of all developers, including Spotify, the world’s largest music streaming app. Spotify pays nothing to Apple for the services that have assisted them in developing, updating, and distributing their app to Apple users in 160 countries worldwide. Their complaint fundamentally revolves around seeking unrestricted access to Apple’s tools without compensating for the value Apple provides.”
Reports indicate that the European Commission is nearing the end of its investigation. Apple mentioned that Spotify, established in 2006, could have chosen to directly link to its website for account management but opted not to do so.
The US-based company pointed out that despite allegations of competition issues and restrictions on informing users about subscription options, Spotify has become the largest digital music service globally, holding over 50% market share in Europe. It argued that Spotify and other streaming platforms have various avenues, such as email marketing and social media, to promote their services and guide users to sign up outside the App Store.
Apple also criticized EU regulators, noting that despite nearly a decade of scrutiny, the European Commission has not found any evidence of consumer harm or anti-competitive behavior by the company in this market.
The company suggested that the investigation might solidify Spotify’s position as the market leader instead of fostering competition. When Spotify lodged its complaint in 2019, its founder, Daniel Ek, stated in a blog post that Apple had “implemented rules in the App Store designed to restrict choice and hinder innovation.”
