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EU charges Apple for breach of Competition Law

2 min read

Soni Satti

European Union antitrust regulators charged Apple with unlawfully distorting competition in the music-streaming industry by enforcing restrictive App Store regulations.

It’s one of the largest-ever antitrust lawsuits targeting the tech giant in the United States, and it could result in hefty penalties.

According to an Apple spokesman, the EU’s situation is “the opposite of fair competition,”

The charges are the result of an EU investigation into a lawsuit filed by Spotify, a popular music streaming service. 

In a tweet, EU Competition Commissioner, Margrethe Vestager said, “Our preliminary conclusion: Apple is in breach of EU competition law,”

European Commission contended that Apple’s App Store regulations require rival developers to use Apple’s in-app payment scheme, which costs up to 30% commission and prohibits them from informing users of cheaper payment options.

 The commission stated, “By setting strict rules on the App Store that disadvantage competing music streaming services, Apple deprives users of cheaper music streaming choices and distorts competition,” 

The European Commission stated that Apple now has the opportunity to respond to the accusations and make its case in a hearing before a final decision is made. Fines of up to 10% of the company’s global revenue could be levied against it.

The Apple Spokesperson denied all the charges and stated that Spotify needs all the perks of the App Store without thinking that they will have to pay extra for it.

The Spokesperson of Apple added, “Spotify has become the largest music subscription service in the world, and we’re proud of the role we played in that,”, and noted that “the Commission’s argument on Spotify’s behalf is the exact opposite of fair competition,”