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Apple Anti-Competitive, European Commission Says

The European Commission has leveled a serious accusation at the Cupertino-based tech company Apple. According to reports, the Commission believes that Apple is being anti-competitive with regard to rival music streaming services like Spotify and Soundcloud. At issue, according to Brussels, are two rules relating to Apple’s popular App Store platform.

The first rule is that Apple gets a 30 percent cut of any subscriptions managed through the App Store. This can lead to services charging more on that platform to offset the commission that Apple takes off the top. Brussels is also taking aim at Apple’s stipulation that app developers can’t tell users about the option to subscribe to the service for a lower cost through an alternative platform, such as the app’s main webpage.

Anti-Competition Accusations

The European Commission’s argument hinges on a feature unique to the iPhone ecosystem: the only way to get applications on an iPhone is to use the App Store. Unlike Android phones, which allow users to download alternative marketplaces, Apple users have to use Apple’s service. This, combined with the “anti-steering” rules and commission rate, has led to the Commission finding Apple is in violation of anti-competition rules in the EU.

Currently, Apple’s not facing any repercussions. The Commission’s findings have been submitted to Apple in writing, and the company will be able to request an oral hearing. However, by opening an investigation, the Commission could be heading toward a formal court case against the tech company.

Apple Is in a Strange Position

While Apple is the target of an antitrust investigation in Europe, the company has another battle going on with companies like Facebook. The company’s newest update for iPhones, 14.5, has altered the way apps are able to track user information for advertising purposes.

This move, combined with the company’s insistence on user privacy with regards to law enforcement investigations, has led to tensions between Apple and various organizations within the US. Even as the EU case goes on, however, Apple insists that the Commission’s argument is actually counter to fair competition.

Apple’s Rebuttal

“Spotify has become the largest music subscription service in the world, and we’re proud of the role we played in that,” Apple stated in regards to the news. “Once again, they want all the benefits of the App Store but don’t think they should have to pay anything for that. The Commission’s argument on Spotify’s behalf is the opposite of fair competition.”

The European Commission, for their own part, has expressed that this is not just a Spotify case, but a case related to all music streaming services. “Apple’s actions are damaging not only to Spotify but to the entire ecosystem of app developers,” insisted Spotify’s head lawyer, Horacio Gutierrez.