Apple has been charged with violating EU competition rules over the way it runs its App Store.
European Commission anti-trust regulator Margrethe Vestager tweeted that “consumers are losing out”.
This is in line with charges brought two years ago by music streaming app Spotify which claimed that Apple was stifling innovation in that industry.
Apple faces a large fine and may be compelled to change its policies if its arguments do not convince regulators.
Apple has denied any wrong-doing.
The case examines specifically as to how its App Store policies affect music streaming. The charge was originally filed in 2019 by co-founder of Spotify Daniel Ek, who said that Apple was “limiting choice and stifling innovation”.
“Apple’s rules distort competition in the market for music streaming by raising the costs of competing music streaming app developers. This in turn leads to higher prices for consumers for their in-app music subscriptions on iOS devices,” an EC statement said.
Responding, Apple said it did not receive any commission on 99% of Spotify’s subscribers.
“At the core of this case is Spotify’s demand they should be able to advertise alternative deals on their iOS app, a practice that no store in the world allows,” it said in a statement.
“Once again, they want all the benefits of the App Store but don’t think they should have to pay anything for that. The Commission’s argument on Spotify’s behalf is the opposite of fair competition.”
Alexander Holland, chief content and strategy officer at music streaming platform Deezer said he was happy with the Commission’s findings.
“It’s an important step towards a fair competitive landscape where dominant market players like Apple have to compete with independent companies like Deezer on quality of service, innovation and consumer experience, rather than artificially created barriers and a lack of a level playing field.”
