The European Commission has filed antitrust charges against Apple regarding concerns about Apple’s App Store practices.Committee I got you Apple violates EU competition rules in App Store policy First complaint from Spotify Specifically, the Commission believes that Apple “has a dominant position in the market for delivering music streaming apps through the App Store.”
The EU focuses on two rules that Apple imposes on developers. One is forced use of Apple’s in-app purchase system (Apple charges a 30% reduction), and the other is a rule that prohibits app developers from notifying users of other purchase options other than the app. .. The Commission has found that a 30% commission, or the so-called “Apple tax,” is raising consumer prices. According to the European Commission, “Most streaming providers have passed this fee on to end users by raising prices.”
Our preliminary conclusion: @Apple It violates EU competition law. @AppleMusic Compete with other music streaming services.But @Apple We charge high fees to App Store rivals and prohibit you from notifying you of alternative subscription options. Consumers are losing.
— Margrethe Vestager (@vestager) April 30, 2021
“Apple’s rules distort competition in the music streaming service market by raising the cost of competing music streaming app developers,” the EU statement said. “This will increase consumer prices for in-app music subscriptions on iOS devices.” The EU also sent a statement of appeal to Apple. This is essentially an indication of how the Commission believes Apple has violated competition rules.
This is the first formal step in antitrust proceedings against Apple, and the company has the opportunity to respond to the Commission’s list of oppositions. Apple faces a fine of up to 10% of its annual revenue if convicted of violating EU regulations. That could be as much as $ 27 billion, based on Apple’s $ 274.5 billion in annual revenue last year. Apple can also be forced to change its business model, which is more damaging and lasting than fines.
At the heart of this entire case is what’s called the “Apple Tax,” where Apple cuts subscriptions by 30%. Companies like Netflix and Spotify have long opposed this reduction, but Apple claims that revenue contributes to maintaining the App Store and the cost of implementing various content, privacy, and security policies. ..
Previously claimed Spotify Apple uses the App Store to curb innovation, limit consumer choice and favor its own Apple Music service.The complaint was followed up with something similar RakutenApple claims that it is anti-competitive to pay a 30% commission for e-books sold through the App Store while promoting its own Apple Books service.
Epic Games has also participated in many developers and companies that oppose Apple’s App Store policy. Alleged violation of antitrust law With the EU earlier this year.It’s part of Ongoing dispute with Apple, later Fortnite The developers have publicly criticized Apple’s App Store policy for distribution and payment.This is now an epic Trying to avoid 30% reduction in Apple in-app purchases Fortnite, and Apple soon Remove the game from the App Store..
Apple has relaxed some policies over the past year as the backlash against the App Store has grown. Apple currently allows some video streaming apps Bypass App Store cuts, And it reduced its App Store Fee rate up to 15% For developers with annual revenue of less than $ 1 million.
EU accuses Apple of App Store antitrust violations after Spotify complaint Source link EU accuses Apple of App Store antitrust violations after Spotify complaint