EU expected to impose fines on Apple for forcing in-app payments on Spotify
Apple “EU judgment was influenced by Spotify complaints… wrong decision”
Apple has claimed that the music streaming app ‘Spotify’ attempted to have unlimited access to Apple’s services without paying anything for the profits earned through the App Store.
Apple is facing a fine worth KRW 700 billion from the European Union (EU) due to its policy of forcing in-app payments (app store internal payments) on Spotify, etc., which appears to be a backlash against this.
Apple issued a statement on the 22nd (local time) and said, “Spotify did not pay Apple anything in relation to the service that helped it share apps with Apple users in 160 countries around the world.”
Spotify is one of the biggest competitors of Apple’s music streaming service, Apple Music. Spotify claimed that in 2019, Apple increased the monthly subscription fee when it implemented a fee policy within the App Store. As a high commission of 30% was imposed on App Store in-app purchases, there was no choice but to raise the subscription fee. After conducting a long-term investigation after Spotify raised the issue, the EU concluded that Apple had forced unfair trading practices on its competitors.
Initially, Spotify and others were informing users that they could sign up for apps or services not only within the App Store (in-app) but also through other external methods.
However, Apple viewed this method as a means of avoiding App Store fees and banned so-called third-party payment methods. The EU concluded that Apple’s actions of restricting competitors’ services and promotions through mandatory in-app payment policies were unfairly advantageous to Apple Music.
In the industry, it has been reported that the EU has decided to impose a fine of 500 million euros (approximately 719.5 billion won) on Apple based on the results of an investigation into Apple’s antitrust conduct.
In response, Apple countered that Spotify’s attack on Apple’s in-app payment regulations was not for fair competition or consumers, but to increase its own profits. Apple claims that Spotify is using the European Commission (EC) to get better trading terms.
Regarding the EC’s judgment that its regulations may cause confusion for users of music streaming services, Apple also argued that “the EC’s opinion is erroneous, greatly influenced by Spotify’s continued complaints.”
When Apple made this statement, Spotify immediately responded. Spotify also said in a statement, “Apple is controlling Spotify’s access to its customers (iPhone users). “Apple only provides users with a ‘poor’ environment where they cannot directly guide users on how to use the service, or forces us to pay a 30% commission to our biggest competitor at a disadvantage,” he said. “This is not fair competition.” “We believe that the EC will take steps to create a fair ecosystem.”
The conflict between Apple and Spotify over the issue of in-app payments in the music streaming market appears to be reaching its extreme. If the EU imposes an actual fine on Apple, it is highly likely that Apple will immediately appeal. It is expected that the anti-monopoly fight between these two companies will be prolonged.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.