FT has reported that the EU will be investigating the Apple and Spotify issue now. EU’s regulatory body European Commission is planning to launch a competition enquiry about the Spotify claims. Spotify has stated that the iPhone takes advantage of owning the App Store and “deliberately disadvantage other app developers.”
Spotify filed a complaint in March saying that Apple is misusing its power of owning the App Store. Daniel Ek of Spotify said that Apple locks developers and takes out a commission of 30% out of their app spending. He said that Apple has an unfair advantage when compared to rivals and expressed concern about Apple’s controls. Apple is capable of controlling communication between app publishers and users. It places some unfair restrictions on the marketers and their promotions which usually benefit the customers.
Ek has also added that most of the developers know this issue but aren’t dare enough to speak about it directly. If the investigation goes forward as ET is claiming, the EU will tap into this silent base.
Apple has responded for Spotify’s claims, but they weren’t directly answering the questions posed by Spotify. The company ignored the issues like demanding equal treatment for third-party apps just like they do with their own apps, providing alternative payment methods just like Google Play Store does, etc.
EU is known for taking action on the tech monopolies, and now the regulatory body is aiming at the topmost tech company from the US.
They have fined Google with 1.19 billion Euros last year and also investigated Facebook about privacy issues. EU pressurized Facebook is enough to make the company a clear announcement about their terms and conditions.