Apple store policies under scanner after the EU sees merit in allegations
Spotify lodged a complaint with the commission of competition of the European Union, was originally regarded as a mere attempt to publicise itself. The claims, however, seem to have some merit in the eyes of the EU as they have initiated an investigation into these allegations.
The investigation on the antitrust allegation is being conducted by competition commissioners of the EU. The allegation by Spotify is that Apple unfairly hinders Spotify and other similar applications used for music streaming and downloads through their App Store policies, they do this as these apps are rivals to Apple Music. With the investigation set to commence next week, neither company has made any further comment on the matter.
Apple has, in the past, openly rejected and rebuked these assertions and accusations made by Spotify in reply, accused Spotify of being driven by certain “financial motivations” and had an ulterior motive of benefitting from Apple’s infrastructure without making a contribution to it.
The technology giant has also openly denied having provided Apple Music with any kind of priveledges on a software level and justified this claim by bringing up the fact that they were prepared to enter talks with Spotify on AirPlay and Siri integrations. Apple is confident in its policies and protocol, developers of the App Store not only have to provide a 30% cut of their subscription revenue in the first year followed by 15 in the second, but these developers cannot guide customers to any outside website to subscribe there.
The only other option the providers have is to charge extra for App Store purchases and subscriptions not unlike what Spotify currently does or by sacrificing a large portion of their costs. Spotify does stand to gain if it wins which seems unlikely.
If Spotify wins, it will not only receive more subscriptions from Apple users but also liberate these users to choose a third-party application if they wish to do so. This means bad news for Apple itself as the sales of iPhones fall the company is staying afloat on the back of its services revenue and a loss of subscribers to Apple Music could prove to be problematic.