This week, Apple and Spotify are back in court due to an ongoing EU antitrust case. In 2021, the EU preliminarily concluded that the App Store showed unfair favouritism towards Apple Music, to the disadvantage of other music streaming services like Spotify.
Despite being charged for unfair treatment of competitors like Spotify within its App Store, Apple insists that it has already made sufficient changes and does not need to make any further adjustments.
However, Spotify disagrees and claims that the recent policy changes made by the App Store are purely cosmetic and do not address the underlying problem of Apple’s anti-steering regulations.
Spotify no longer allows users on iPhone to subscribe to the Premium plan through the iPhone app. It shows users a message reading, “can’t upgrade to Premium in the app,” and says, “we know, it’s not ideal.”
In February, the European Union withdrew some of its complaints against Apple’s commission charges for digital goods and the mandatory use of Apple’s In-App Purchase system. However, the remaining complaint focuses on Apple’s policy of prohibiting apps from informing customers about other subscription options, such as through a web browser.
The Commission has stated that the anti-steering obligations violate EU regulations prohibiting unfair trading conditions. This legal argument is relatively new in antitrust cases.
According to Apple, the case initiated by Spotify’s complaint in 2019 has no basis as Spotify has a larger market share in Europe than Apple Music, ranked third or fourth in most EU countries.
Apple will defend itself against the EU’s accusations of imposing illegal restrictions on apps like Spotify in a hearing on Friday. The company will argue that developers are not prevented from directing users away from the App Store.
If Apple is unable to persuade the commission and antitrust regulators that it has not violated EU regulations, the company may face a fine of up to 10% of its yearly sales. However, it is rare for penalties to reach such high amounts.
Despite being charged for unfair treatment of competitors like Spotify within its App Store, Apple insists that it has already made sufficient changes and does not need to make any further adjustments.
However, Spotify disagrees and claims that the recent policy changes made by the App Store are purely cosmetic and do not address the underlying problem of Apple’s anti-steering regulations.
Spotify no longer allows users on iPhone to subscribe to the Premium plan through the iPhone app. It shows users a message reading, “can’t upgrade to Premium in the app,” and says, “we know, it’s not ideal.”
In February, the European Union withdrew some of its complaints against Apple’s commission charges for digital goods and the mandatory use of Apple’s In-App Purchase system. However, the remaining complaint focuses on Apple’s policy of prohibiting apps from informing customers about other subscription options, such as through a web browser.
The Commission has stated that the anti-steering obligations violate EU regulations prohibiting unfair trading conditions. This legal argument is relatively new in antitrust cases.
According to Apple, the case initiated by Spotify’s complaint in 2019 has no basis as Spotify has a larger market share in Europe than Apple Music, ranked third or fourth in most EU countries.
Apple will defend itself against the EU’s accusations of imposing illegal restrictions on apps like Spotify in a hearing on Friday. The company will argue that developers are not prevented from directing users away from the App Store.
If Apple is unable to persuade the commission and antitrust regulators that it has not violated EU regulations, the company may face a fine of up to 10% of its yearly sales. However, it is rare for penalties to reach such high amounts.
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