Starting in 2016, the Swedish company stopped allowing customers to purchase a subscription through its iPhone and iPad apps as a way to avoid paying Apple’s fee, instead steering people to Spotify’s website. Spotify cheered the European Commission’s decision. “It is an area that has raised concern with a number of colleagues of ours around the world,” Ms. Vestager said the commission had other investigations underway against Apple, including whether the company boxes out rivals to Apple Pay, and had been speaking with counterparts in the United States, Australia and the Netherlands about the inquiries. They argue it allows Apple to undercut competitors to services like Apple Music and charge an unfair tax on developers. But companies including Spotify, the music streaming service that filed a complaint two years ago that set off the European Union’s investigation, have grown frustrated with its powerful position.
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If not, a company risks losing access to millions of Apple customers.Īpple says tight oversight of the App Store ensures customers download high-quality apps, protecting users from viruses, fraud and buggy software. Any app downloaded to an iPhone or iPad - from Tinder to Instagram to Candy Crush - must comply with the company’s rules and guidelines, including using Apple’s payment system and sharing up to 30 percent on any sales. With its ability to make or break the business of app developers, Apple is one of the digital economy’s most important gatekeepers. Europe is seen as a global bellwether on tech policy, but Apple has vowed to fight the charges. LONDON - European Union regulators on Friday accused Apple of violating antitrust laws by imposing unfair rules and fees on rival music-streaming services that depend on the App Store to reach customers.Īmid growing scrutiny of the tech industry worldwide, the case will be an important test of a government's ability to force one of Silicon Valley’s most powerful companies to change its behavior.
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