{"id":42322,"date":"2024-03-04T17:27:15","date_gmt":"2024-03-04T22:27:15","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=42322"},"modified":"2024-05-21T13:56:37","modified_gmt":"2024-05-21T17:56:37","slug":"eu-fines-apple-2-billion-over-anti-steering-rules","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2024\/03\/04\/eu-fines-apple-2-billion-over-anti-steering-rules\/","title":{"rendered":"EU Fines Apple $2 Billion Over Anti-Steering Rules"},"content":{"rendered":"

Foo Yun Chee<\/a> (European Commission<\/a>, Hacker News<\/a>, MacRumors<\/a>):<\/p>\n

Brussels on Monday fined Apple, opens new tab 1.84 billion euros ($2 billion) for thwarting competition from music streaming rivals via restrictions on its App Store, the iPhone maker’s first ever penalty for breaching EU rules<\/a>.<\/p>

A basic penalty of 40 million euros was inflated by a huge lump sum included as a deterrent - a first for the European Union’s antitrust authorities.<\/p>

The European Commission charged Apple last year with preventing Swedish streaming service Spotify, opens new tab and others from informing users of payment options outside its App Store, following a 2019 complaint by Spotify.<\/p><\/blockquote>\n\n

Apple<\/a>:<\/p>\n

\n

The primary advocate for this decision — and the biggest beneficiary — is Spotify, a company based in Stockholm, Sweden. Spotify has the largest music streaming app in the world, and has met with the European Commission more than 65 times during this investigation.<\/p>\n

Today, Spotify has a 56 percent share of Europe’s music streaming market — more than double their closest competitor’s — and pays Apple nothing for the services that have helped make them one of the most recognizable brands in the world. A large part of their success is due to the App Store, along with all the tools and technology that Spotify uses to build, update, and share their app with Apple users around the world.<\/p>\n

[…]<\/p>\n

Since the App Store launched more than 15 years ago, Apple has had two simple goals: creating a safe and trusted marketplace for our users, and an incredible business opportunity for developers.<\/p>\n

[…]<\/p>\n

Today, developers compete on a level playing field on the App Store.<\/p>\n

[…]<\/p>\n

We’ve even flown our engineers to Stockholm to help Spotify’s teams in person.<\/p>\n<\/blockquote>\n

It’s not level between developers<\/a> and certainly not between Spotify and Apple Music<\/a>.<\/p>\n\n

Isaiah Carew<\/a>:<\/p>\n

\n

It’s difficult to tell whether this is marketing spin, legal CYA, or if there are executives at apple who actually believe this obvious laughable disinformation nonsense.<\/p>\n

I used to wonder the same thing when they made statements about the cursed butterfly keyboard.<\/p>\n<\/blockquote>\n\n

Benjamin Mayo<\/a>:<\/p>\n

\n

Apple says the EU has found no evidence of consumer harm, and “ignores the reality of a market that is thriving, competitive and growing fast”. In a statement<\/a>, Spotify welcomed the judgement and its effective implementation.<\/p>\n

[…]<\/p>\n

The fine is the culmination of an EU investigation that has spanned more than a decade, with Spotify first filing a formal complaint<\/a> in 2019. The $2bn fine amount is proportionate to Apple’s global revenues and “necessary to achieve deterrence”, according to the EU commission ruling.<\/p>\n

[…]<\/p>\n

It’s unclear whether the current incarnation of App Store rules are still considered to be in breach of the law, in the eyes of the EU.<\/p>\n<\/blockquote>\n\n

Eric Schwarz<\/a>:<\/p>\n

\n

Spotify’s corporate communications tend to come across as “entitled brat” more often than not, including their response<\/a> not taking the win with class (I’m pretty sure using the word ‘monopoly’ is inaccurate at this point in time, but I don’t see the EC telling Spotify to watch their language).<\/p>\n<\/blockquote>\n\n

Apple brags<\/a>:<\/p>\n

Music app developers can even include information about other offers available outside of their app, along with a link directing users to a website to create and manage their account.<\/p><\/blockquote>\n

This is quite limited and not available to all app types in all regions.<\/p>\n\n

\n

We introduced the reader rule years ago in response to feedback from developers like Spotify.<\/p>\n<\/blockquote>\n\n

Nick Heer<\/a>:<\/p>\n

\n

Is less than two years<\/a> really “years ago”?<\/p>\n<\/blockquote>\n

Apple seems to be taking credit for announcing that it would add the rule<\/em> in 2021, but it didn’t actually do so until March 30, 2022.<\/p>\n\n

Peter Steinberger<\/a>:<\/p>\n

\n

Apple playing hurt baby. The App Store helped Spotify so much!! We provide all the API!!1!<\/p>\n

Nobody would buy iPhones without support for apps. It’s in their own best interest to provide a dev toolkit and support.<\/p>\n<\/blockquote>\n\n\n\n

Craig Grannell<\/a>:<\/p>\n

\n

I’m quite taken aback by this latest press release, which appears to infer certain companies are freeloading, deriving their value primarily from Apple’s platform. But without those apps, the iPhone wouldn’t have much value itself – witness Windows Phone.<\/p>\n

And, really, Apple arguing it created value for Spotify by way of Apple’s app review team reviewing 421 versions of the Spotify app so said Spotify app can end up on Apple’s own App Store? Really?<\/p>\n<\/blockquote>\n\n

Ian Betteridge<\/a>:<\/p>\n

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Oh god I’m going to have to a line by line examination of that stupid Apple statement about the European Commission fine, aren’t I?<\/p>\n<\/blockquote>\n\n

Jason McFadden<\/a>:<\/p>\n

Apple’s EU statement almost reads as if the App Store was solely responsible for Spotify’s success, largely ignoring how much the Android platform (Google Play Store) contributes as well.<\/p><\/blockquote>\n\n

Steve Troughton-Smith<\/a>:<\/p>\n

Apple’s EU fine today shows why the DMA is important, too — it took Spotify eight+ years to challenge a single clause of Apple’s developer agreement, and only for a single category of app (music players).<\/p>

It shows just how much other developers would have to fight to make these improvements available to every app through individual legal actions, and how infeasible it is.<\/p><\/blockquote>\n\n

Previously:<\/p>\n