Apple intends to contest the record-breaking €1.84 billion fine the European Commission imposed for its anticompetitive actions in the streaming music sector. Apple has singled out Spotify, a Stockholm-based company, as the “primary advocate” and “biggest beneficiary” of the EC’s decision. Apple pointed out that Spotify holds a 56% share of the streaming music market in Europe.
Leading up to the EC’s ruling, the Cupertino-based tech giant had already expressed its stance on Spotify, stating that Spotify’s complaint revolved around “seeking unlimited access to all of Apple’s tools without compensation.”
Apple has generously disclosed a plethora of exclusive insights into Spotify’s operations on Apple’s platforms. This includes Spotify utilizing “thousands of Apple’s APIs across 60 frameworks,” conducting app testing via Apple’s Testflight platform, submitting over 420 app versions for Apple’s review, and boasting over 119 billion downloads, re-downloads, or updates on Apple devices.
Apple’s response to the EC fine highlights the impressive scale of Spotify’s business and the thriving European digital music market, which now boasts nearly 160 million subscribers, a significant increase from 25 million in 2015.
Apple reiterated that Spotify pays no App Store commissions as it exclusively sells subscriptions on Apple’s website. At the core of Spotify’s complaint lies a desire to directly engage with its customers regarding subscriptions, promotions, and discounts through its iOS app. Apple’s long-standing anti-steering rules have finally been adjusted in 2022 to allow an exception for “reader apps,” such as streaming services, enabling apps to direct users to external websites. Yet, Apple retains control over approving those who can utilize this exception, maintaining authority over the situation instead of simply revising its guidelines to permit links openly.
Spotify is accused by Apple of attempting to manipulate the rules in their favor by incorporating subscription prices within their app rather than utilizing the App Store’s in-app purchase system, according to Apple’s statement.
“Embrace Apple’s cutting-edge tools and technologies, showcase your app on the prestigious App Store, and leverage the trust we’ve established with millions of users—all without any cost to Apple,” proclaims Apple. “Spotify craves more.”
Apple stands firm in its respect for the European Commission, yet asserts that the decision lacks factual support. Consequently, Apple has announced its intention to appeal.
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