Apple Faces App Store EU Antitrust Fee and Potentially Fine Big

The European Commission accused the Apple of Antitrust, allebting that App Store rules relied on “dominant positions” to squeeze streaming music rivals such as Spotify. The cost of claiming Apple’s policy – especially the 30 percent cutting takes a subscription in the application for competitive streaming services – has led to price increases paid by users in Europe. If it is found guilty of antimonopolic behavior, Apple faces a billion-dollar potential in a fine.

Apple, EC said today, “Competition is distorted on the music streaming market” by bending in its position as a gate to iOS and iPados devices. Rivals to Apple Music faces limitations and rules that Apple’s own services are not, with the final result is that many competitors encourage their subscription fees, provide fees to end users.

“This commission requires problems with the use of purchasing mechanisms in Apple’s own applications imposed on developers of music streaming applications to distribute their applications through Apple App Store,” said EC today. “Commission is also worried that Apple applies certain restrictions on application developers that prevent them from telling iPhone users and alternative iPads, the possibility of cheaper purchases.”

Apple does allow services such as Spotify and Tidal to receive new registration to their streaming services in their iPhone and iPad applications. However, 30 percent cuts are needed on that income – in general, although not official, referred to as “Apple tax” – as a commission. The developer is only allowed to use the Apple purchasing system, not a third party option as they can use outside the App Store.

There are several reactions to the approach. Some companies choose to charge a higher price through the App Store, to accommodate the Apple commission. The others raise prices throughout the board, whether subscribers are set through the App Store or vice versa. Either Way, European Commissioner Margrethe Restager argues, “Apple seizes cheaper music streaming options and distorting competition.”

“Our investigation shows that these costs are forwarded to end users by raising prices,” Vestager said, “usually from 9.99 to 12.99 euros.”

At the same time, EC also requires a problem with what is called “steering provisions.” Apple does not allow application makers to advertise alternative offers in Applications in the App Store: it is to say, Spotify – who filed an initial complaint to EC about Apple – not permitted to promote a cheaper subscription outside the version of the Apple purchase process.

“Not only are they not permitted to mention their website or any link with them in their own application,” Vestager said. “They are also not allowed to send emails to users who create an account in the application to tell them about a cheaper alternative.”