© Avalon.red
Apple will receive a European fine of 1.84 billion euros because the American technology giant abuses its power in the market for music streaming services. The European Commission has decided that.
Monday, March 4, 2024 at 1:47 PM
Consumers who have an iPhone or iPad – and therefore work with Apple’s iOS operating system – may not be sufficiently informed by the developer of the music streaming service to which they have a subscription about alternative or cheaper formulas, outside the app. That’s because Apple’s App Store in Europe is the only platform that developers can and may use to reach (potential) customers.
Such practices are not permitted in the European Union, the Commission says. That is why she is imposing a fine of 1.84 billion euros on Apple. The fine must be high enough to make Apple abandon its policy, it sounds. The company will also be required to remove the objectionable conditions.
“Impermissible practices”
At her press conference, European Commissioner for Competition Policy Margrethe Vestager gave some examples of what she called Apple’s unacceptable practices. For example, developers of streaming apps (such as Spotify or Deezer) are not allowed to inform their subscribers about other formulas in the app itself.
Developers are also not allowed to integrate hyperlinks to their own websites in their apps, and are not allowed to contact their customers themselves outside of Apple’s App Store, such as via email. “This leaves millions of users in the dark about all the options available to them,” Vestager said.
Higher subscription prices
Apple has had that policy for almost ten years. As a result, the usage fees that Apple charges streaming developers have resulted in higher subscription prices. Because Apple has a market monopoly, developers only have the choice between accepting the imposed conditions or leaving the App Store – and thus losing all iOS users among their subscribers.
