- The European Commission is set to rule on Spotify’s complaint against Apple for unfair competition in music streaming.
- Apple faces a hefty fine of €500 million ($539 million USD) for allegedly breaking EU laws.
- Apple argues it’s not harming Spotify and provides essential services for free.
- Spotify accuses Apple of favoring its own music service and creating unfair conditions.
The European Commission is set to decide on Spotify’s complaint about competition in the music streaming market. There are discussions suggesting that the ruling might not be in Apple’s favor. Reports suggest the Commission will slap Apple with a big fine of around €500 million (that’s about USD 539 million) for allegedly breaking EU competition laws. Instead of just accepting this fine as a cost of doing business, Apple is fighting back publicly.
Apple claims that Spotify, which is the biggest music streaming app globally, hasn’t been hurt by any unfair practices. They argue that Spotify doesn’t pay anything for using Apple’s services to build, update, and share its app with Apple users worldwide. Apple points out that Spotify holds 56% of the market share, while Amazon Music has 20% and Apple Music has 11%, according to a 2022 report.
Apple also shared some behind-the-scenes info about Spotify’s business on Apple’s platforms. For instance, Spotify uses a lot of Apple’s tools and technologies, and Apple’s engineers have helped Spotify with various issues. Plus, Spotify’s app has been downloaded or updated over 119 billion times on Apple devices.
Apple believes it’s necessary to speak up because it thinks it’s doing what’s best for its customers and developer partners. They argue that their in-app purchase system not only makes it easier for users but also protects against fraud and other problems.
Spotify, on the other hand, argues that Apple unfairly favors its own music service. They say Apple controls how Spotify can reach its customers and forces Spotify to either offer a bad user experience on iPhones or pay a 30% fee, giving Apple Music an advantage.
Both Apple and Spotify have been in talks with the European Commission about this issue. Spotify hopes the Commission will take action to make the ecosystem fair for everyone involved.
