The rules of Apple’s App Store are unfair, the European Commission concluded after a year-long investigation.
The EU launched a formal investigation into Apple’s App Store rules last June, following a complaint from Spotify in 2019, arguing that Apple’s App Store rules prevent the company from remaining competitive.
Europe’s preliminary conclusion is that Apple is violating European competition laws.
Crucially, the EU concluded that Apple’s App Store fees leave no choice for streaming services like Spotify and Deezer, except to pass them on to consumers if they want to remain competitive with Apple’s Apple Music service.
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Spotify CEO Daniel I called the decision “big day” on Twitter.
Apple again rejected the EU’s conclusions.
Again, they want all the benefits of the App Store, but they don’t think they need to pay anything, “the company said in a statement.” The Commission’s argument on behalf of Spotify is the opposite of fair competition. ”
Apple now has 12 weeks to formally respond to EU objections. If you don’t follow the rules of the App Store, you could be fined up to 10% of annual sales, which could mean billions of dollars for Apple.