The European Commission has now announced that it has narrowed its antitrust investigation into Apple's rules for music streaming apps.
In a revised statement of objections to Apple, the Commission said it will no longer take action against apps that require them to use the App Store's in-app purchasing system for digital goods and services. The investigation was launched in 2019 after Spotify filed an antitrust complaint against Apple. The probe will now focus on how Apple prevents iPhone and iPad users from being informed within the app that lower subscription prices are available if they sign up outside the App Store. Subscriptions can sometimes be more expensive when purchased through the App Store than when purchased directly from the app's website, as developers try to offset the £15-£30 in-app subscription fees charged by Apple.
Apple comments on the latest EU decision
The Commission's preliminary conclusion is that Apple's rules are "anti-competitive" and violate EU antitrust rules. The Commission added that the rules are "detrimental to users of music streaming services on Apple mobile devices" because they ultimately have to pay more and "harm the interests of music streaming app developers by limiting effective choice for consumers." In a statement opposite An Apple spokesperson told the US blog MacRumors that the company was “pleased” that the Commission had narrowed the case:
Apple will continue to work with the European Commission to understand and respond to its concerns while promoting competition and choice for European consumers. We are pleased that the Commission has narrowed its case and is no longer challenging Apple's right to charge commissions on digital goods and to require the use of in-app payment systems that users trust. The App Store has helped make Spotify the leading music streaming service in Europe and we hope that the European Commission will drop its unfounded complaint.
Spotify no longer allows customers to subscribe to the service through the iPhone app. A message in the app's Premium tab informs customers that they "cannot upgrade to Premium within the app" and states, "We understand this isn't ideal." The tab contains no information or external links to the subscription on the Spotify website.
Apple: Spotify is one of the most successful apps in the App Store
Apple's App Store Review Guidelines allow developers to inform users about alternative purchase methods through communication outside the app, such as email. "Reader" apps like Spotify can also include an in-app link to their website, where users can set up or manage their account. However, Spotify is still not permitted to advertise the lower subscription prices available on its website in its iPhone app. In its response, Apple stated that it always promotes competition, that it is just one of many competitors in the European music streaming market, and that the iOS app economy supports 2.2 million European jobs. Apple also cited reports showing that Spotify is one of the most successful apps in the App Store and a market-dominant company. (Photo by Unsplash / Carles Rabada)
