The App Store is facing antitrust complaints around the world.
In an apparent blow to Apple’s ongoing and international antitrust woes over its App Store, the European Union’s European Commission issued a “ statement of objections” on Friday saying it believes Apple is abusing its position in the music streaming app marketplace, in what could be a violation of the EU’s antitrust laws. The preliminary findings do not bode well for Apple for the outcome of the commission’s investigation, which was prompted by a complaint from Spotify. “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,” Margrethe Vestager, executive vice president of the European Commission who oversees competition and antitrust enforcement, said in a statement. “With Apple Music, Apple also competes with music streaming providers.” The European Commission found that Apple’s App Store rules — and the fact that the App Store alone was the only way for Apple mobile device users to get apps for their iPhones and iPads — forced app developers to play by those rules and pay Apple’s commissions if they wanted access to Apple’s users. The commission on purchases and subscriptions Apple demands, the European Commission said, led to higher prices for those users. The commission also objected to Apple’s anti-steering provisions, which prevent companies from informing users that they could purchase subscriptions outside the App Store. A statement of objections is not the end result of an investigation, but it is a formal step in the process. If Apple is found to have violated the EU’s antitrust rules, it could be fined up to 10 percent of its annual revenue. “The European Commission’s Statement of Objections is a critical step toward holding Apple accountable for its anticompetitive behavior, ensuring meaningful choice for all consumers and a level playing field for app developers,” Spotify’s head of global affairs and chief legal officer Horacio Gutierrez said in a statement.
