Apple and Spotify are back in court this week, as the EU antitrust case remains ongoing. The EU reached its preliminary conclusion in 2021 that App Store unfairly favored Apple Music over Spotify and other music streaming services.
Via Bloomberg, on Friday, Apple lawyers will argue that it has addressed competition concerns in the last two years and no more changes are necessary. In a statement, Spotify said recent App Store policy changes were “just for show” and do not address the core issue of Apple’s anti-steering rules.
Apple could be on the hook for a hefty fine if it is found to have infringed EU law. There is no timeline as to when the EU investigation would close.
In February, the EU dropped part of its complaint surrounding Apple’s right to charge commission on digital goods and the requirement to use Apple’s In-App Purchase system. The remaining complaint revolves around the way Apple forbids apps from informing customers about alternative ways to subscribe, such as through the web browser.
As Apple’s lawyers reference, the company has relaxed its anti-steering rules slightly since the 2021 complaint. “Reader” apps are allowed to apply for an external link entitlement that lets their app provide a link for account creation, or account management.
In a statement to Bloomberg, Spotify said these changes were immaterial to the point of the complaint and it supports the current EU charge sheet.
“These rules still exist today and Apple’s supposed changes in fact change nothing at all and are just for show,” Spotify said in a statement. “We support the European Commission and believe that the” charge sheet “addresses Apple’s unfair business practices.”
In some geographic markets, developers are also allowed to use the External Link entitlement to prompt a transaction to take place outside of the In-App Purchase system. For instance, this is the case for Dutch dating apps in the Netherlands. However, Apple still requires developers pay commission (27% versus the standard 30% IAP rate) on revenue collected.
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