Spotify asks EU for swift and decisive action against Apple monopoly
Spotify asks EU for swift and decisive action against Apple monopoly
Spotify asks EU for “swift and decisive” action against Apple monopoly
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Spotify and seven other companies have written a letter to the European Commission to complain against the Apple monopoly and its strategies for curbing competition. These companies believe that Apple is benefiting from an unfair advantage and ask for “swift and decisive” actions.
The music streaming company filed a lawsuit against Apple four years ago, and since then, both companies have had multiple disputes regarding the App Store policies. Spotify filed this lawsuit in 2019. Despite the fact that the EU has sided with Spotify, it didn’t issue a final ruling yet.
Spotify’s main argument is that its competition with Apple Music is unfair. Apple Music can evade paying a 30% fee. After all, it belongs to Apple
Introduction:
Spotify is an online music streaming service and it has recently requested European Union (EU) to take action against Apple’s monopoly. Spotify argues that Apple, which owns online app stores, is engaging in anti-competitive practices by charging high fees to developers that offer their services on the Apple platform and this, in turn, limits competition. This article will discuss the situation, provide frequently asked questions (FAQs) concerning the issue and summarize the article.
What is Apple’s Monopoly?
Apple owns multiple app stores, such as Apple Music, the App Store and the iTunes Store, that are used by companies to sell and promote digital content. Apple imposes strict rules and restrictions on developers who want access to those stores, such as charging an extra 30% revenue for each purchase made by customers. Apple also prohibits developers from informing their customers about cheaper, alternative options.
Why is Spotify Complaining?
Spotify believes that these practices limitation competition, which runs counter to EU anti-trust regulations. Further, Spotify argues that Apple’s fees have a disproportionate impact on streaming services. As a result, it claims that Apple’s fees increase the fees that consumers must pay for music streaming services.
What Action has the EU Taken?
In April 2020, the EU launched an investigation into potential Apple monopolistic behaviours and practices. The investigation is still ongoing and the EU has yet to reach a conclusion. However, Spotify and other developersto have sought swift and decisive action from the EU.
Frequently Asked Questions
- What is Spotify?
Spotify is an online music streaming service.
- What is Apple’s monopoly?
Apple owns multiple app stores which it imposes strict rules and restrictions on developers who want access to them and charges an extra 30% revenue for each purchase made by customers.
- What action has the EU taken?
In April 2020, the EU launched an investigation into potential Apple monopolistic behaviours and practices and Spotify and other developers have sought swift and decisive action from the EU.
Summary
Spotify has raised an alarm regarding Apple’s potential monopolistic behaviour, which includes imposing strict rules on developers and charging an extra 30% for each purchase made. Spotify believes this is against EU anti-trust regulations and increases the cost of streaming services for consumers. In response, the EU has launched an investigation into the complaint and Spotify has requested swift and decisive action from the EU. If the EU finds Apple in violation of competition law, it could order changes to Apple’s practices or impose a fine.
