Music
Apple defends itself against European antitrust allegations
Apple and Spotify are arguing about whether taking out a paid subscription via the Spotify app can be prohibited if Spotify does not want the iPhone manufacturer to share in sales. photo
© Julian Stratenschulte/dpa
After a years-long antitrust investigation in the EU, Apple is facing a heavy fine. Before the commission announces a possible fine, the company takes another stand.
Before an eagerly awaited decision by the EU Commission on a high fine against Apple, the iPhone company, has rejected any violations of European competition law. A company representative rejected allegations that Apple had in any way harmed competition in the digital music market.
The Financial Times recently reported that Apple was facing a fine of around 500 million euros for violating EU competition law. The EU Commission plans to announce the exact amount in March.
Accusation: Competition on the streaming market is distorted
The antitrust dispute concerns the question of whether Apple, as the operator of the app store for the iPhone and iPad, has distorted competition in the music streaming market or not. The world’s largest streaming provider Spotify has been complaining for years that Apple prefers its own Apple Music service and prevents competitors from offering Apple users alternative ordering and payment options for music subscriptions.
Specifically, the two sides are arguing about whether taking out a paid subscription via the Spotify app can be prohibited if Spotify does not want the iPhone manufacturer to share in sales.
Apple emphasized that the business had developed exceptionally well for Spotify since the first complaint in Europe in 2013. With a market share of 59 percent, the Swedes are now leading – ahead of Amazon Prime Music with 18 percent and YouTube Music with nine percent. Apple is only in fourth place with eight percent market share. It is noteworthy that the share of Spotify on Apple smartphones is even higher than on Android devices.
Fine of 500 million euros?
The company left it open as to how it would behave if the EU Commission actually imposed a fine of around 500 million euros. Apple has legal recourse, similar to the tax dispute with the EU. In 2016, the EU Commission ordered EU member Ireland to demand 13 billion euros in taxes from Apple.
The decision was annulled four years later by the General Court of the European Union (ECC) in Luxembourg. The Commission was unable to prove that the company paid too little tax in Ireland and that the tax authorities there granted Apple unfair advantages. However, the tax process has not yet been completed because an appeal process is still ongoing before the European Court of Justice (ECJ).