Apple Inc. AAPL has accused Spotify Technology SA SPOT of attempting to gain unrestricted access to its tools without compensating for the value provided. This comes as reports about preparing to fine Apple $500 million for its alleged anti-competitive App Store policies surfaced.
What Happened: The EU is expected to impose a $500 million fine on Apple for its App Store policies regarding music streaming services. This decision follows a complaint filed by Spotify in 2013.
Apple, in response to the impending fine, has reiterated its stance that Spotify’s complaint is essentially about seeking unfettered access to Apple’s tools without paying for the value provided, reported 9to5Mac.
In a statement given to the report, Apple said, “We're happy to support the success of all developers — including Spotify, which is the largest music streaming app in the world.”
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Adding, “Spotify pays Apple nothing for the services that have helped them build, update, and share their app with Apple users in 160 countries spanning the globe. Fundamentally, their complaint is about trying to get limitless access to all of Apple's tools without paying anything for the value Apple provides.”
The EU’s preliminary conclusion in 2021 was that the App Store unfairly favored Apple Music over Spotify and other music streaming services. The impending ruling will specifically address how Apple’s “anti-steering” rules affect music streaming services, not other app categories.
The initial report regarding Apple’s $500 million fine surfaced over the past weekend. The European Commission has not yet formally announced the decision, thus the fine amount remains subject to potential variation.
Meanwhile, Apple has revised App Store Guidelines over the years. It now allows apps like Spotify to link to their websites for account management and communicate directly with customers about payment methods outside their iOS app, the report noted.
Spotify said that its “success has happened despite Apple's best efforts to gain an artificial advantage by favoring their own music service at every turn while placing roadblocks and imposing unfair restrictions on ours.”
“Under their current rules Apple controls Spotify's access to its own customers and gives Spotify one of two untenable options: We either have to deliver a poor user experience where we can't directly communicate how to buy or subscribe to Spotify on iPhones or we have to accept a 30% cost disadvantage against our biggest competitor,” the statement read.
Adding, “This is not a level playing field. We support the European Commission and trust that they will take action soon to create a fair ecosystem for everyone involved."
Why It Matters: The EU’s decision to fine Apple comes amid a series of disputes between the tech giant and various entities. In January, Spotify announced its intention to bypass Apple’s 30% App Store fee in Europe through in-app purchases. This move was seen as a response to the new competition law for Big Tech in Europe.
Spotify had been embroiled in a legal battle with Apple, alleging that it was forced to raise its monthly subscription prices to cover the costs associated with Apple’s App Store regulations.
The Digital Markets Act or DMA, which all major tech companies must adhere to, requires firms to treat their products and services the same way they treat those of their competitors.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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