EC Pressures Apple with Music Streaming Charge

EC Pressures Apple with Music Streaming Charge

Foto: Depositphotos

The European Commission said that Apple broke local laws by distorting competition in the music streaming market and abusing its dominant position in the segment through its App Store. Explaining the outcome of a two-year investigation, started after a complaint from Spotify, the EC announced it had sent objections to Apple over its practices related to the distribution of music streaming apps.

The EC highlighted the mandatory use of Apple’s purchase mechanism in the App Store, noting it had concerns the US company placed certain restrictions on app developers which prevented them from informing iPhone and iPad users of alternative, cheaper purchasing possibilities. European Commission cited Apple’s 30 percent commission rate and requirements for developers to adhere to strict rules to access the App Store, factors the company argues are designed to ensure quality.

EC executive vice president Margrethe Vestager said there were clear signs Apple's App Store rules were affecting music streaming rivals' business development and affecting app developers more widely. “With Apple Music, Apple also competes with music streaming providers. By setting strict rules on the app store that disadvantage competing music streaming services, Apple deprives users of cheaper music streaming choices and distorts competition,” Vestager said.

With the EC formally charging Apple, the case could now go to court, although an appeal by the company is likely and is expected to hold up formal proceedings. Financial Times wrote that this is the first time EU regulators have formally charged Apple.

More from category

Telefonica Posts Record Profit on Tower Sale

Telefonica Posts Record Profit on Tower Sale

31 Jul 2021 comment

Spanish based operator Telefonica raised its full year outlook after posting an all-time record net income.

Strong First Half for Nokia, 2021 Outlook Revised Upwards

Strong First Half for Nokia, 2021 Outlook Revised Upwards

31 Jul 2021 comment

Nokia's net sales grew 9 percent on constant currency in the second quarter of 2021.

Samsung's Revenue Went Up 20 Percent in the Last Quarter

Samsung's Revenue Went Up 20 Percent in the Last Quarter

30 Jul 2021 comment

During the second quarter of 2021, Samsung made a net profit of KRW9.6 trillion ($8.4 billion), up from KRW5.6 trillion in the same period last year.