In early 2019, Spotify filed a formal complaint with the European Commission regarding Apple’s alleged anti-competitive practices.
Spotify is the world’s leading music streaming service and it has been a major success in Europe since its launch in 2008. However, Apple has been dominating the market since it launched its competing service Apple Music in 2015. Despite Spotify having more subscribers than Apple Music, Apple has been able to leverage their App Store and other services to give their own service an unfair advantage.
Spotify’s complaint to the European Commission focused on two main issues, both of which are related to Apple’s App Store. The first issue deals with Apple’s 30% commission on all subscriptions made through the App Store.
This means that if a customer wants to subscribe to Spotify through their iPhone or iPad they have to pay 30% more than they would if they subscribed through another platform. This makes it difficult for companies like Spotify to compete with Apple.
The second issue revolves around how Apple treats companies that use its payment system. According to Spotify, Apple doesn’t allow companies that use its payment system (such as Spotify) to communicate any information about alternative payment options (such as a discount for paying outside of the app). This means that customers are not informed about cheaper options and are instead forced into using the expensive App Store payment system.
Conclusion:
Yes, Spotify did indeed sue Apple in early 2019 over anti-competitive practices. The European Commission is currently investigating these claims and it remains to be seen what will happen next. It is clear though that this could have major implications for how digital services are regulated in Europe going forward.
10 Related Question Answers Found
Is Spotify Suing Apple? The short answer is yes. Spotify, the popular streaming music service, has filed a complaint against Apple with the European Commission alleging that Apple is engaging in anticompetitive behavior.
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