{"id":123267,"date":"2021-04-30T12:40:44","date_gmt":"2021-04-30T12:40:44","guid":{"rendered":"https:\/\/precoinnews.com\/?p=123267"},"modified":"2021-04-30T12:40:44","modified_gmt":"2021-04-30T12:40:44","slug":"eu-hits-apple-with-music-streaming-charge-in-boost-for-spotify","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/eu-hits-apple-with-music-streaming-charge-in-boost-for-spotify\/","title":{"rendered":"EU hits Apple with music streaming charge in boost for Spotify"},"content":{"rendered":"

BRUSSELS (Reuters) -EU regulators accused Apple on Friday of distorting competition in the music streaming market, siding with Spotify in a case that could lead to a hefty fine and changes in the iPhone maker\u2019s lucrative business practices.<\/p>

FILE PHOTO: A 3D-printed Apple logo is seen in front of a displayed European Union flag in this illustration taken September 2, 2016. REUTERS\/Dado Ruvic\/Illustration<\/figcaption>

The preliminary findings are the first time Brussels has levelled anti-competitive charges against Apple, although the two sides have had bruising clashes in the past, most notably a multibillion-dollar tax dispute involving Ireland.<\/p>\n

Apple, Spotify and other parties can now respond. If the case is pursued, the EU could demand concessions and potentially impose a fine of up to 10% of Apple\u2019s global turnover – as much as $27 billion, although it rarely levies the maximum penalty.<\/p>\n

Apple found itself in the European Commission\u2019s crosshairs after Sweden-based Spotify complained two years ago that the U.S. tech giant unfairly restricted rivals to its own music streaming service Apple Music on iPhones.<\/p>\n

The EU competition enforcer, in its so-called statement of objections setting out the charge, said the issue related to Apple\u2019s restrictive rules for its App Store that force developers to use its own in-app payment system and prevent them from informing users of other purchasing options.<\/p>\n

\u201cBy setting strict rules on the App store that disadvantage competing music streaming services, Apple deprives users of cheaper music streaming choices and distorts competition,\u201d European Competition Commissioner Margrethe Vestager said in a statement.<\/p>\n

\u201cThis is done by charging high commission fees on each transaction in the App store for rivals and by forbidding them from informing their customers of alternative subscription options,\u201d she said.<\/p>\n

Apple rebuffed the EU charge.<\/p>\n

\u201cSpotify has become the largest music subscription service in the world, and we\u2019re proud of the role we played in that,\u201d it said in a statement.<\/p>\n

Related Coverage<\/p>\n<\/p>\n

\u201cThey want all the benefits of the App Store but don\u2019t think they should have to pay anything for that. The Commission\u2019s argument on Spotify\u2019s behalf is the opposite of fair competition,\u201d it added.<\/p>\n

INTERNET GATEKEEPERS<\/h2>\n

Spotify welcomed the EU move, describing it as \u201ca critical step toward holding Apple accountable for its anticompetitive behavior, ensuring meaningful choice for all consumers and a level playing field for app developers.\u201d<\/p>\n

Reuters was first to report about the imminent EU antitrust charge in March.<\/p>\n

Spotify, one of Europe\u2019s few global success stories in consumer technology, is the market leader in music streaming with 356 million active users and 158 million paid subscribers.<\/p>\n

Apple Music, launched more recently in 2015, is estimated to have more than 70 million subscribers although the company does not give a separate figure for that part of its business.<\/p>\n

Competition between the two companies has intensified in recent weeks, with both seeking to build their customer base via supremacy in the market for podcasts.<\/p>\n

\u201cEurope\u2019s consumers expect and deserve access to a full range of music streaming services without their choices being restricted or prices being inflated unfairly by internet gatekeepers,\u201d said European consumer organisation BEUC.<\/p>\n

The EU charge comes a week before Apple\u2019s face off with Epic Games in a U.S. antitrust trial following a lawsuit by the \u201cFortnite\u201d creator alleging that Apple has abused its dominance in the market for mobile apps.<\/p>\n

Epic has complained to the Commission on the same issues.<\/p>\n

Last month, the UK Competition and Markets Authority opened an investigation into Apple after complaints the iPhone maker\u2019s terms and conditions for app developers were unfair.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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