European Union regulators have recently lodged a complaint against Apple Inc., alleging that the tech giant has violated the bloc’s competition rules. These accusations primarily focus on the operations of the App Store and revolve around the issue of Apple’s dominance in the music streaming market.
Spotify, an online music streaming service and key competitor of Apple, lodged a complaint with the EU two years ago, which led to this investigation. The complainant alleges that Apple engages in anti-competitive practices by charging high commissions on rivals in the App Store while promoting its own music service, Apple Music. In other words, Apple is accused of abusing its control over the App Store and favoring its own services, negating fair competition.
Apple has responded to these accusations, stating that they only aim to set a consistent standard for all developers. Defending their commission rates, they argue that the majority of apps are free and pay nothing to the App Store. Investigations are ongoing, and if the commission finds that Apple did infringe upon EU competition rules, the tech giant can face penalties up to 10% of its global turnover.
