Today and as planned, European Commission accused Apple of breaking competition rules concerning the distribution of music. Apple Music, according to the Commission, competes with terms other than those of other services available in the store. Union competition chief Margrethe Vestager sees it as prejudicial to consumers.
A commission passed on through prices to consumers
Our preliminary conclusion: @Apple violates EU competition law. @AppleMusic compete with other music streaming services. But @Apple charges high commission fees on rivals in the App Store and prohibits them from informing about alternative subscription options. Consumers lose.
– Margrethe Vestager (@vestager) April 30, 2021
“Our preliminary conclusion is that Apple is breaking EU competition laws,” Vestager said in a statement. Tweeter. To the Executive Vice President of the European Commission, Apple Music competes with other music services Diffusion to which it charges a commission and prevents informing users of alternative subscription channels. Therefore, “consumers are the losers”.
The Commission sees problematic two of the rules of the App Store. The first revolves around the App Store commission, which charges 30% of subscriptions purchased through an app in the first year, dropping to 15% in subsequent years. The second focuses on not promoting other subscription channels within the app that invite the user to leave the “circuit” of the App Store.
The system Digital Shopping on the App Store is also in question. Known as IAP or in-app purchase, is a system for carrying out secure transactions between developer and user, with the App Store as an intermediary. In these purchases, the App Store also limits access to the user’s contact details, a point also criticized by Spotify.
Spotify and Fortnite attack the App Store
The distribution of applications through the App Store is under siege. In recent years, it’s not just Spotify that has taken on Apple. Last year, Epic Games forced a game with Fortnite to get a better deal with Apple. This denied and kicked the game from the App Store, which is why the developer sued those from Cupertino in the United States.
Epic Games has also sued Apple in the European Union. However, the Union has not yet pronounced on this subject. It must be remembered that the European Commission also sued Apple for the Irish tax case and that ultimately the EU Court of Justice ruled in favor of the technology. Of course, the Commission appealed the decision and the final decision is still pending.
This Monday, the trial in the United States between Epic Games and Apple will begin. Those in Fortnite are struggling to prove their case, although Apple will not have it at all easy. The App Store is in the sights of these and other big developers, who hope to gain advantages in the current situation.