Apple Responds to EU's Decision to Narrow Antitrust Case Prompted by Spotify

The European Commission today announced it has narrowed its antitrust investigation into Apple's rules for streaming music apps. In a revised Statement of Objections sent to Apple, the Commission said it will no longer challenge Apple's requirement for apps to use the App Store's in-app purchase system for digital goods and services. The investigation began in 2019 after Spotify filed an antitrust complaint against Apple.

Apple vs Spotify feature
The investigation will now focus entirely on Apple 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. Subscriptions can sometimes cost extra when initiated through the App Store compared to directly on an app's website, as developers look to offset Apple's 15% to 30% fee on in-app subscriptions.

The Commission's preliminary view is that Apple's rules equate to "anti-steering" and "unfair trading conditions," in breach of EU antitrust law. The Commission added that the rules are "detrimental to users of music streaming services on Apple's mobile devices" given they may end up paying more and "negatively affect the interests of music streaming app developers by limiting effective consumer choice."

In a statement shared with MacRumors, an Apple spokesperson said the company is "pleased" that the Commission has narrowed its case:

Apple will continue to work with the European Commission to understand and respond to their concerns, all the while promoting competition and choice for European consumers. We're pleased that the Commission has narrowed its case and is no longer challenging Apple's right to collect a commission for digital goods and require the use of the In-App Payment systems users trust. The App Store has helped Spotify become the top music streaming service across Europe and we hope the European Commission will end its pursuit of a complaint that has no merit.

Spotify no longer allows customers to subscribe through its iPhone app. A message in the Premium tab of the app informs customers that they "can't upgrade to Premium in the app" and says "we know, it's not ideal." The tab does not provide any information or external links related to subscribing on Spotify's website.

Apple's App Store Review Guidelines allow developers to inform users about alternative purchasing methods with communication outside of the app, such as email. "Reader" apps such as Spotify can also include an in-app link to their website for users to set up or manage their accounts. Ultimately, though, Spotify still cannot advertise the lower subscription prices available through its website within its iPhone app.

As part of its response, Apple said it always promotes competition, is only one of many competitors in the streaming music market in Europe, and that the iOS app economy supports 2.2 million European jobs. Apple also cited reports finding that Spotify is among the most successful apps on the App Store and a dominant business.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Popular Stories

iPhone SE 4 Vertical Camera Feature

iPhone SE 4 Rumored to Use Same Rear Chassis as iPhone 16

Friday July 19, 2024 7:16 am PDT by
Apple will adopt the same rear chassis manufacturing process for the iPhone SE 4 that it is using for the upcoming standard iPhone 16, claims a new rumor coming out of China. According to the Weibo-based leaker "Fixed Focus Digital," the backplate manufacturing process for the iPhone SE 4 is "exactly the same" as the standard model in Apple's upcoming iPhone 16 lineup, which is expected to...
iPhone 16 Pro Sizes Feature

iPhone 16 Series Is Just Two Months Away: Everything We Know

Monday July 15, 2024 4:44 am PDT by
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
bsod

Crowdstrike Says Global IT Outage Impacting Windows PCs, But Mac and Linux Hosts Not Affected

Friday July 19, 2024 3:12 am PDT by
A widespread system failure is currently affecting numerous Windows devices globally, causing critical boot failures across various industries, including banks, rail networks, airlines, retailers, broadcasters, healthcare, and many more sectors. The issue, manifesting as a Blue Screen of Death (BSOD), is preventing computers from starting up properly and forcing them into continuous recovery...
iphone 14 lineup

Cellebrite Unable to Unlock iPhones on iOS 17.4 or Later, Leak Reveals

Thursday July 18, 2024 4:18 am PDT by
Israel-based mobile forensics company Cellebrite is unable to unlock iPhones running iOS 17.4 or later, according to leaked documents verified by 404 Media. The documents provide a rare glimpse into the capabilities of the company's mobile forensics tools and highlight the ongoing security improvements in Apple's latest devices. The leaked "Cellebrite iOS Support Matrix" obtained by 404 Media...
Apple Watch Series 9

2024 Apple Watch Lineup: Key Changes We're Expecting

Tuesday July 16, 2024 7:59 am PDT by
Apple is seemingly planning a rework of the Apple Watch lineup for 2024, according to a range of reports from over the past year. Here's everything we know so far. Apple is expected to continue to offer three different Apple Watch models in five casing sizes, but the various display sizes will allegedly grow by up to 12% and the casings will get taller. Based on all of the latest rumors,...
tinypod apple watch

TinyPod Turns Your Apple Watch Into an iPod

Wednesday July 17, 2024 3:18 pm PDT by
If you have an old Apple Watch and you're not sure what to do with it, a new product called TinyPod might be the answer. Priced at $79, the TinyPod is a silicone case with a built-in scroll wheel that houses the Apple Watch chassis. When an Apple Watch is placed inside the TinyPod, the click wheel on the case is able to be used to scroll through the Apple Watch interface. The feature works...

Top Rated Comments

cocky jeremy Avatar
18 months ago

Well, let's be honest 30% fee on in-app subscriptions is just quite big. You won't necessarily use your (Spotify) subscription just on your iPhone device to justify that much of a fee going to the Apple.
30% is pretty standard. Where I work, we won't touch anything under 30% margin.
Score: 17 Votes (Like | Disagree)
Joe Rossignol Avatar
18 months ago

Eh? I must have missed the HomePod marketing that says 'Compatible and works seamlessly with Spotify and Amazon Music'.
Spotify can support the HomePod. Apple made the API available in 2020. They haven't implemented it, probably because they're so salty about Apple.
Score: 14 Votes (Like | Disagree)
Coochie Boogs Avatar
18 months ago
No one, and I mean no one is stopping these companies from creating their own platforms and hardware. Feel free as a company to make moves as you see fit. The entitlement to someone else's work just baffles me.
Score: 13 Votes (Like | Disagree)
Attirex Avatar
18 months ago

30% is pretty standard. Where I work, we won't touch anything under 30% margin.
That's pretty cocky, jeremy.
Score: 12 Votes (Like | Disagree)
lazyrighteye Avatar
18 months ago
No App Store, no Spotify. You’re welcome?
Score: 9 Votes (Like | Disagree)
webkit Avatar
18 months ago

No one, and I mean no one is stopping these companies from creating their own platforms and hardware. Feel free as a company to make moves as you see fit. The entitlement to someone else's work just baffles me.
No one was stopping other companies from making desktop operating systems, no one was stopping computer makers from installing other operating systems (instead of Windows) on their machines, etc. yet that didn't give Microsoft the right to engage in anticompetitive behavior back in the 1990s or other times.

Just because alternatives may exist or could exist does not give dominant companies (like Apple in mobile OS as part of a duopoly with Google/Android) the right to violate antitrust laws and regulations.
Score: 8 Votes (Like | Disagree)