EU regulators just cracked down on Apple $2 billion fine its app store policies.
Apple named the company that filed the complaint first: Spotify.
On Monday, Apple released a rather lengthy statement The European Commission fined the iPhone maker $2 billion. The hefty fine is the result of an EU investigation into complaints against Apple’s App Store.
The complaint, filed by music streaming service Spotify, focuses on Apple’s App Store policy, which prohibits app developers from directing users to subscription options outside of the app to avoid Apple charging in-app purchase fees.EU investigation Summarize Apple is engaging in anticompetitive conduct and violating antitrust laws.
Spotify Famous Apple said in a statement that it would appeal the EU’s decision.
However, Apple goes further. In fact, much of the statement named Spotify.
Here’s what Apple says about Spotify.
Apple pulled no punches in its statement about Spotify.
Much of Apple’s statement, titled “App Store, Spotify, and Europe’s Booming Digital Music Market,” talks about Spotify rather than the EU decision itself.
In a statement, Apple emphasized that Spotify paid absolutely no fees to the iPhone maker for the Spotify app, which Apple said has been “downloaded, re-downloaded, or updated more than 119 billion times on Apple devices.”
Going further, Apple pointed out that although Spotify did not pay the company, Apple has worked with Spotify to ensure that their applications are compatible with “Siri, CarPlay, Apple Watch, AirPlay, Widgets, etc.” Apple mentioned that Spotify uses tools like TestFlight and Apple’s API, and that its review team “frequently responds to Spotify’s request” to “expedite review” of Spotify app updates in the Apple Store.
Apple also seems to point out that Spotify itself has some monopoly-related problems, saying that the music streaming service “occupies 56% of the European music streaming market, more than double the nearest competitor.”
“Despite its success and the important role the App Store plays in making it possible, Spotify does not pay Apple any fees,” Apple said.
“But for Spotify, free isn’t enough,” Apple continued. “They also want to rewrite the rules of the App Store — in a way that’s more favorable to them.”
Apple continues to accuse Spotify of wanting to accept payments directly within the iOS app, using all of Apple’s tools, without participating in the revenue-sharing program that all other developers participate in. Apple mentioned how the company offers a “Reader Rules” policy, which allows developers to provide web links within apps that guide users to account services, which may include billing management and registration. However, Apple said Spotify did not take advantage of this option.
“Instead, Spotify wants to change the rules in their favor by embedding subscription prices in their apps without using the App Store’s in-app purchase system,” Apple said. “They want to use Apple’s tools and technology to sell their subscriptions in the App Store.” distribute on the Internet and benefit from the trust we build with our users, all at no cost to Apple.”
“Simply put, Spotify wants more.”
Apple ended its statement by saying it would appeal the EU’s decision. It will be interesting to see how the traction develops, but more compelling is what the future of the Apple-Spotify relationship looks like.
