Saudi Press

Saudi Arabia and the world
Thursday, Mar 28, 2024

EU accuses Apple of breaking antitrust law over music streaming

EU accuses Apple of breaking antitrust law over music streaming

European regulators have accused Apple (AAPL) of violating EU antitrust law, saying the company's app store rules unfairly restrict rival music services.
Margrethe Vestager, the European Commission's top antitrust official, said Friday that Apple is in breach of competition law because it charges app developers high commission fees and forbids them from telling users about cheaper alternatives.

"Our preliminary conclusion is that Apple abused its dominant position for the distribution of music streaming apps through its app store, and distorted competition in the music streaming markets," she told reporters during a press conference.

The European Commission launched an investigation of Apple last June following a complaint from music and podcast giant Spotify (SPOT).

The Commission said in a statement Friday that it objects to the mandatory use of Apple's in-app purchase system imposed on streaming services. It is "also concerned that Apple applies certain restrictions on app developers" that prevent them from informing iPhone and iPad users of alternative purchasing options.

Doing so "deprives users of cheaper music streaming choices and distorts competition," Vestager said in the statement.

Spotify CEO Daniel Ek praised the Commission, saying in a Twitter post that "fairness is the key to competition.'

"We are one step closer to creating a level playing field, which is so important for the entire ecosystem of European developers," he added.

The accusations are the latest development in a series of high profile battles between the European Union and Big Tech companies that have resulted in hefty penalties. Apple could eventually be fined up to 10% of its annual sales if found in violation of competition rules.

Apple said in a statement on Friday that the "Commission's argument on Spotify's behalf is the opposite of fair competition."

"At the core of this case is Spotify's demand they should be able to advertise alternative deals on their iOS app, a practice that no store in the world allows.

Once again, they want all the benefits of the App Store but don't think they should have to pay anything for that," it added.

Apple will now have the chance to reply to the Commission in writing and request a hearing. It typically takes years for the European Union to conduct and conclude an antitrust case.

Europe has turned itself into the cop on the Big Tech beat, repeatedly enforcing its rules and hitting the industry's top American companies with huge fines.

The European Union last year unveiled formal antitrust charges against Amazon (AMZN) for abusing its dominance in online shopping. Google (GOOGL) has also been hit with a series of antitrust investigations and penalties.

Last year, Apple won an appeal against a landmark 2016 ruling from the European Commission that it owed Ireland €13 billion ($14.9 billion) in taxes.

The European Union's second highest court ruled that the Commission had not proven that the company had received illegal state aid from Ireland through favorable tax agreements. Vestager has appealed the decision.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Reports in Gaza: 5 dead from the impact of aid packages dropped by the USA
Apple warns against drying iPhones with rice
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
The U.S. vetoed a U.N. Security Council resolution calling for a temporary ceasefire in Gaza, instead proposing its own six-week ceasefire plan contingent upon the release of all hostages held by Hamas
Prince William Urges End to Gaza Conflict
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
EU Calls for Immediate Ceasefire in Gaza Conflict
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
Saudi Arabia Introduces Terms for 30-Year Income Tax Exemption for Multinational Companies
Saudi FM: Establishing Palestinian state is only pathway for Mideast stability
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Elon Musk's Starlink Gets License For Israel, Parts Of Gaza
Influencers Exploit X Platform for Profit Amidst Israel-Gaza Conflict
PM Modi Announces Opening Of New CBSE Office In Dubai
International Criminal Court's Chief "Deeply Concerned" By Rafah Bombing
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Indian female military officers commend Saudi Arabia's progress and women's empowerment
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Israel Utilizes AI Military Technology in Gaza Conflict
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
China Warns Iran to Halt Houthi Attacks or Damage Trade Ties
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Iran-backed hackers interrupt UAE TV streaming services with deepfake news
Facebook and Instagram Ban Iran's Supreme Leader
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
U.S. Secretary of State Blinken: The Israelis underwent dehumanization on 7.10, this does not give them the right to do this to others.
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
UK Bans Misleading "Zero Emissions" Claims for Electric Cars
Gaza's Teen Inventor Sparks Light in Displacement
Netanyahu Rejects Ceasefire Proposal, Insists On Total Victory Over Hamas
Guterres appoints independent UNRWA review panel
Private Sector Employment Hits Record High with Over 11 Million Employees in January
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
ZATCA Cautions Against Scammer Schemes
INTRA Defense Technologies inaugurates drone factory in Riyadh
×