Yesterday, the EU’s European Commission took a major step forward in its Apple antitrust inquiry, zeroing in on how App Store rules affect consumers and their access to music streaming services. In response, Spotify expressed hopes for an expedited resolution of this prolonged investigation into tech giant Apple’s practices.
Spotify, a Stockholm-based application provider has been vocal in its opinion of Apple’s practices within the App Store. Having submitted an EU complaint against them back in 2019 soon after launching their “Time to Play Fair” campaign which seeks to criticize app store rules and fees, particularly those related with revenue generated from in-app transactions; they recently addressed the European Commission’s updated investigation into these matters.
As tech titans take sides on App Store policies, the competition between Apple and Spotify has heated up with Epic Games and Deezer joining in. Last year saw Spotify strike an unprecedented deal with Google for better access to their subscription services – a move which was seen as pioneering by many industry insiders!
Daniel Ek flew to Brussels last September in the hopes of hastening an inquiry into Apple which concluded with the European Commission determining that “Apple’s anti-steering obligations constituted unfair trading conditions.”
The Commission has voiced its concern that Apple’s anti-steering rule is preventing streaming app developers from informing consumers of cheaper ways to access their services. This prompted the government entity to launch an updated probe into the tech giant yesterday.
Spotify is strongly in favor of the Commission’s recent decisions, insisting that customers should soon receive an official conclusion to this issue.
In a bold stance against Apple’s unfair circumstances, the European Commission has promised to prioritize putting an end to their anti-competitive practices. Spotify is leading this charge by testing “token enabled” playlists in hopes of protecting consumers from abuse.
Apple has implemented anti-steering rules, blocking Spotify and other developers from informing users of promotional deals. This deprives consumers of potential savings opportunities as well as access to high quality services – impacting them significantly according to ValueAct Capital’s stake in the streaming platform.
Apple’s stronghold on the market has been shaken, with pressure from the European Commission coming to bear. Spotify is calling for resolution quickly in favor of consumers – providing them a fair playing field and political clout that many have longed for. It looks like real change might be here at last!
Apple welcomed the European Commission’s recent clarification and expressed satisfaction that their right to collect commissions on digital goods has been upheld. The company also underscored its commitment to providing users with a secure payment system they can trust.
Music streaming giant Spotify has benefited significantly from Apple’s App Store, with robust returns in Europe that have propelled it to the top spot. In spite of a complaint lodged against them by the European Commission, which they contend is without merit and evidence-based, Q4 2022 saw an impressive services revenue total reach almost $21 billion for Cupertino tech titan Apple Inc.