THE CASE IS ONE OF THE MOST HIGH-PROFILE ANTITRUST CASES IN EUROPE AGAINST A US TECH GROUP

 

Karimi & Associates Law Firm presents according to Reuters:

The charges are related to a complaint brought two years ago by Spotify, the music streaming app, that Apple takes 30 percent commission to distribute apps through its iPhone App Store and forbids apps from directing users to pay for subscriptions elsewhere.

The EU competition enforcer, in its statement of objections setting out the charge, noted the issue related to Apple’s restrictive rules for its App Store that force developers to use its own in-app payment system and prevent them from informing users of other purchasing options.

European Competition Commissioner Margrethe Vestager said there were clear signs Apple’s App Store rules were affecting music streaming rivals’ business development and affecting app developers more widely.

“They (app developers) depend on Apple App Store as a gatekeeper to access users of Apple’s iPhones and iPads. This significant market power cannot go unchecked as the conditions of access to the Apple App Store are key for the success of app developers,” she told a news conference.

Vestager said Apple should end restrictive practices and refrain from doing anything that would replicate them.

Apple, Spotify, and other parties are now able to respond. If the case is pursued, the EU could demand concessions and potentially impose a fine of up to 10% of Apple’s global turnover – as much as $27 billion.

Spotify welcomed the EU move, describing it as “a critical step toward holding Apple accountable for its anticompetitive behavior, ensuring meaningful choice for all consumers and a level playing field for app developers.”