The complaint argues that the 30% commission Apple charges app developers creates unfair competition.
Apple He argues that there is not enough evidence that consumers were harmed.
In March this year, AppleSpotify received a massive fine of €1.8 billion ($2 billion) following a complaint filed in 2019. The complaint was that Apple charged app developers a 30% tax when a user subscribed to its services for one year, and 15% in subsequent years. This gave Apple Music an unfair advantage over competitors like Spotify, as Spotify had to raise subscription fees to cover these taxes.
However Apple, is not willing to pay this penalty. According to Bloomberg, Apple is trying to have this heavy fine canceled by applying to the EU General Court in Luxembourg. Apple argues that the European Commission did not provide credible evidence that consumers were harmed by App Store policies. We’re not legal experts, but we think antitrust laws don’t work that way – predatory pricing, for example, is strictly prohibited. Anyway, this is a matter for the European Commission and
Apple It will be discussed among their lawyers.
Previously, apps couldn’t even announce that users could subscribe at a lower rate through the website. After the European Commission changed the rules, Apple was forced to allow app developers to advertise alternative payment methods.
Spotify is a digital music, podcast and video service founded in Sweden in 2006 by Daniel Ek and Martin Lorentzon. The company offers users a large music library, allowing users to listen to music via various devices over the internet.
Spotify’s Key Features and Services:
- Large Music Catalog: Spotify has a huge music library with millions of songs and albums. Users can search for the song they want and listen to it instantly.
- Personalized Playlists: Spotify offers personalized playlists that are automatically created based on users’ listening habits. Lists like “Discover Weekly” and “Release Radar” are popular for discovering new music.
- Offline Listening: Premium subscription users can download music to their devices for offline listening. This feature makes it possible to listen to music even when there is no internet connection.
- Podcasts: Spotify offers a large library of podcasts. Users can listen to podcasts from various categories and follow their favorite podcasts.
- Social Sharing: Users can share the songs they listen to and the playlists they create on social media platforms. They can also create collaborative playlists with friends.
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