Apple’s App Store rules are unfair, the European Commission has concluded following a year-long investigation.
The EU launched a formal investigation into Apple’s App Store rules last June, following a complaint by Spotify in 2019, which claimed that Apple’s App Store rules make it impossible for the company to stay competitive.
Now, Europe’s preliminary conclusion is that Apple is in breach of Europe’s competition law.
“Our preliminary conclusion is that Apple abused its dominant position for the distribution of music streaming apps through its App Store and distorted competition in the music streaming market,” the EU Commissioner for Competition Margrethe Vestager said in a statement Friday.
Our preliminary conclusion: @Apple is in breach of EU competition law. @AppleMusic compete with other music streaming services. But @Apple charges high commission fees on rivals in the App store & forbids them to inform of alternative subscription options. Consumers losing out.
— Margrethe Vestager (@vestager) April 30, 2021
In a nutshell, the EU has found that Apple’s App Store fees leave streaming services such as Spotify and Deezer no choice but to pass them onto consumers — if they want to stay competitive with Apple’s own Apple Music service.
Spotify CEO Daniel Ek called the decision a “big day” on Twitter. “We are one step closer to creating a level playing field, which is so important for the entire ecosystem of European developers,” he wrote.
Today is a big day. Fairness is the key to competition. With the @EU_Commission Statement of Objections, we are one step closer to creating a level playing field, which is so important for the entire ecosystem of European developers. https://t.co/dOw1K0Qo1W
— Daniel Ek (@eldsjal) April 30, 2021
Apple once again rejected the EU’s findings.
“Once again, they want all the benefits of the App Store but don’t think they should have to pay anything for that,” the company said in a statement. “The Commission’s argument on Spotify’s behalf is the opposite of fair competition.”
Apple now has 12 weeks to formally respond to EU’s objections. Failing to make changes to its App Store rules, it could be fined up to 10 percent of its annual revenue, which, for Apple, might mean billions of dollars.