The European Commission accuses Apple of abusing their position as a gatekeeper in the music streaming market.
In its ‘statement of objections’ the Commission says music streaming app developers who want to reach Apple device users (iPhone, iPad) have to use Apple store and are charged a 30% commission fee on all subscriptions. They are also obliged to follow Apple’s ‘anti-steering provisions’, which limit developers from informing consumers of alternative purchasing possibilities outside of apps.
Executive Vice President Margrethe Vestager, in charge of competition policy, said: “Our preliminary finding is that Apple is a gatekeeper to users of iPhones and iPads via the App Store. With Apple Music, Apple also competes with music streaming providers. By setting strict rules on the App store that disadvantage competing music streaming services, Apple deprives users of cheaper music streaming choices and distorts competition. This 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.”
Markus Ferber MEP, European People’s Party group spokesman on economic affairs welcomed the development: “There is always a big risk of abuse for a platform operator like Apple to give preference to its own services on its platform compared to competing services.
“Apple has been using its App Store for a while to keep its competitors at bay by using dodgy contractual clauses and exorbitant fees. By making use of these anti-competitive practices, gatekeepers such as Apple are preventing true competition from emerging in the first place.”
Ferber also called the Commission’s action long overdue: “It took years for EU competition authorities to get their act together. Apple’s competitors have had to take the hit in the meantime. We urgently have to move from ex-post competition enforcement to ex-ante prevention of market abuse. The Digital Markets Act can be a powerful tool in this regard.”