Spotify Welcomes €2 Billion Fine as Apple’s Anti-Competitive Behavior is Declared Illegal
Apple was hit with a hefty €1.8 billion ($1.95 billion) fine in the European Union for engaging in anti-competitive practices against rival streaming music services. Following this ruling, Spotify, the popular music streaming platform, has lauded the European Commission’s decision, expressing its support for the regulatory action.
Context: Spotify’s 2019 Complaint Sparks Investigation
The investigation into Apple’s practices by the European Commission was initiated in response to a complaint filed by Spotify in 2019. Spotify, a vocal critic of Apple’s 30 percent fee, alleged that the company’s practices unfairly disadvantaged competing streaming apps, including Spotify, in favor of its own music service, Apple Music.
Apple’s Unlawful Behavior Restricts Consumer Communication
Spotify’s complaint focused on Apple’s rules, which limited the ability of music streaming services to communicate directly with users through their apps. Spotify argued that it was denied the opportunity to inform its users about various benefits, including subscriptions, promotions, discounts, and other perks. Notably, Apple Music, as a competitor, was not subject to the same restrictions. Spotify asserts that by putting a stop to Apple’s illegal conduct, the European Commission prioritizes consumers and upholds the principles of free markets, granting customers the ability to make informed choices.
Investigation Highlights Apple’s Anti-Steering Rules
The European Commission’s investigation, which initially focused on Apple’s App Store fees and in-app purchase requirements, subsequently shifted to encompass Apple’s anti-steering rules. These rules prevented Spotify and other developers from notifying iOS users about alternative and potentially cheaper music subscription services that exist outside of the app. As a result, the EC found that Apple’s restrictive measures violated EU antitrust rules. Furthermore, it was concluded that Apple’s actions led to significantly higher prices for music streaming subscriptions, negatively impacting consumers.
Spotify Delineates Apple’s Misconduct and Calls for Fair Digital Marketplace
In response to the ruling, Spotify asserts that Apple has consistently defied laws and court decisions in various markets. Spotify remains resolute in challenging Apple’s unfair practices. The music streaming giant aims to ensure the existence of a truly fair digital marketplace for all. While Apple plans to appeal the decision, it maintains that the European Commission’s view has been erroneously influenced by Spotify’s complaints.
Looking Ahead: Changing European Regulations and Spotify’s Concerns
Future developments in Europe are expected to grant Spotify the ability to release an app outside of the App Store, allowing support for alternative app marketplaces. However, Spotify has criticized Apple’s plans, stating that they fail to comply with the DMA (Digital Markets Act) and have labeled the forthcoming changes in Europe as a “complete and total farce.”
