Apple may be fined equivalent to 10% of annual revenue by the EU for violating antitrust laws in its dispute with Spotify over the App Store
Apple collects 30% of sales from apps distributed on the App Store as a commission. App developers have long criticized this fee for being too high, and the music streaming service Spotify has long been at the forefront of this conflict with Apple. In response to Spotify's complaint, it has been revealed that European Union (EU) regulators are planning to impose a large fine on Apple for violating antitrust laws.
Apple Set to Be Hit by EU Antitrust Order in App Store Fight With Spotify - Bloomberg
Report: EU to Rule on Apple Case in Early 2024
https://www.pymnts.com/antitrust/2023/report-eu-to-rule-on-apple-music-streaming-case-in-early-2024/
EU Plans to Let Spotify Direct Users to Other Payment Options on iPhone - MacRumors
https://www.macrumors.com/2023/12/13/eu-plans-to-end-apple-anti-steering-rule/
The EU will reportedly rule against Apple in Spotify's complaint over App Store policies
https://www.engadget.com/the-eu-will-reportedly-rule-against-apple-in-spotifys-complaint-over-app-store-policies-195704039.html
Spotify filed a complaint with EU antitrust regulators in March 2019, claiming that ``Apple is unfairly restricting other companies that compete with Apple Music on the App Store.'' Spotify claims in its lawsuit that ``App Store fee collection impedes fair competition.'' In response, Apple argues that Spotify's reluctance to pay the App Store and artists will destroy the music industry.
Spotify sues European Commission for violation of antitrust law, saying ``Apple's excessive fees hinder fair competition'' - GIGAZINE
EU regulators are trying to prevent Apple from steering music streaming users away from the App Store to cheaper subscription music streaming services, according to people familiar with the investigation stemming from the lawsuit. It is possible that a final decision on this action will be made as early as 2024. In a complaint released in February 2023, EU regulators said that Apple's 'App Store fees are unfair and cause users to face high service fees.' I was criticizing.
According to Bloomberg, the EU could impose a fine on Apple equal to 10% of its annual revenue. It seems that EU penalties rarely reach this level, and there is a possibility that Apple will be ordered to change its business model.
A source close to Apple said during a closed-door hearing with EU regulators in June 2023 that Apple has 'already addressed any potential competition concerns.' I took a stance. In fact, Apple also allowed links to external websites from within apps in September 2021, and from early 2022 it will allow apps to use third-party payment methods outside of the App Store. This allows third-party apps to avoid Apple's ``30% of sales'' fee.
Apple finally allows the use of third-party payment methods on iOS, first in South Korea - GIGAZINE
However, Spotify has criticized Apple's response as ``just a sham'' and points out that there are still limitations. According to people involved in the investigation, Apple is negotiating to settle the matter.
Apple is being investigated by regulators not only in the EU but also in the US on suspicion that its App Store practices violate antitrust laws. In addition, Google, which operates a mobile app store like Apple, has been sued by Epic Games, and a judgment in favor of Epic Games was just handed down in December 2023.
California court rules in favor of Epic Games in Epic Games vs. Google antitrust lawsuit - GIGAZINE
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