EU to Fine Apple Over Anti-Steering Rules
Apple is set to be hit with a €500 million ($538 million) fine for allegedly breaking EU law over access to music streaming services, according to a Financial Times report.
The focus of the European Commission’s investigation has been Apple’s policy of preventing streaming music apps from informing iPhone and iPad users within the app that lower subscription prices are available when signing up outside of the App Store.
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According to the paywalled FT report, the Commission will say Apple’s actions are illegal and go against the bloc’s rules that enforce competition in the single market. Subsequently, it will ban Apple’s practice of blocking music services from letting users outside its App Store switch to cheaper alternatives, which has historically given Apple Music an unfair advantage.
Previously:
- Apple Resisting Further Changes to Anti-Steering Rules
- EU Narrowing the Spotify Antitrust Case
- Apple Rejects Spotify Update That E-mails External Purchase Info
- Relaxing Anti-Steering Rules for Reader Apps
Update (2024-02-23): Juli Clover:
In a statement to MacRumors, Apple said that Spotify is aiming to get unlimited access to Apple’s tools and services without paying anything for the value that Spotify receives from the App Store.
“We’re happy to support the success of all developers -- including Spotify, which is the largest music streaming app in the world. Spotify pays Apple nothing for the services that have helped them build, update, and share their app with Apple users in 160 countries spanning the globe. Fundamentally, their complaint is about trying to get limitless access to all of Apple’s tools without paying anything for the value Apple provides.”
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In a statement, Spotify said it does not have a level playing field with Apple and trusts that the European Commission will take action to create a fair ecosystem.
Spotify’s success has happened despite Apple’s best efforts to gain an artificial advantage by favoring their own music service at every turn while placing roadblocks and imposing unfair restrictions on ours. Under their current rules Apple controls Spotify’s access to its own customers and gives Spotify one of two untenable options: We either have to deliver a poor user experience where we can’t directly communicate how to buy or subscribe to Spotify on iPhones or we have to accept a 30% cost disadvantage against our biggest competitor. This is not a level playing field. We support the European Commission and trust that they will take action soon to create a fair ecosystem for everyone involved.
Whoever wrote the anti-steering clause into the App Store Guidelines just cost the company half a billion dollars in fines, so far, based on a single category of affected app — music.
Yet the company still has the gall to put out PR spin, regurgitated as fact by favored outlets, as if it’s a victim.
You know what “nothing” is? iPhones without third party software.
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