Apple’s strict control over the iOS ecosystem has prompted the European Commission to investigate whether Apple may be denying consumers access to alternative products at cheaper prices.
The European Commission is launching two antitrust investigations into whether Apple’s App Store and Apple Pay undermine competition.
On Tuesday, the commission announced the coming investigations, citing complaints from Spotify and an unnamed ebook distributor regarding Apple’s 30 percent cut of digital sales on its platforms.
In Spotify’s case, the 30 percent cut forced the music-streaming provider to pass on costs to consumers, resulting in the monthly subscription fee going up from $9.99 to $12.99 for customers who subscribe and pay via Apple’s App Store.
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The 30 percent cut also put Spotify at a disadvantage against Cupertino’s own competing streaming service Apple Music, which charges $9.99 a month. In response, Spotify has encouraged users to sign up via Spotify’s website. Nevertheless, Apple rules can prohibit app developers from notifying users about alternative ways to pay even outside their iOS apps.
« Apple’s competitors have either decided to disable the in-app subscription possibility altogether or have raised their subscription prices in the app and passed on Apple’s fee to consumers.
