Apple may face €500 million fine over Spotify's antitrust complaint
Apple may face a hefty €500 million (around Rs. 4,472 crore) fine as a result of an EU investigation into Spotify's antitrust complaint filed in 2019, according to the Financial Times. Since 2019, EU regulators have been looking into Spotify's claim that Apple's App Store policies hinder competition in the music streaming market. These policies do not allow iPhone apps to inform users of cheaper alternatives to access music subscriptions outside the App Store.
EU's objections and Apple's policy change
EU's concerns mainly revolved around Apple's policy of not letting developers include links to their subscription sign-ups within their apps. The upcoming judgment will focus on the effects of App Store policies on music streaming services. While the ruling won't require Apple to allow alternative in-app payment methods, it'll demand that music streaming app developers can freely link to their websites for online subscriptions. This could lead to better profits as the companies won't have to pay Apple's commission fees.
Alternate payment methods to be allowed soon
Following the Digital Markets Act, coming into effect next month, Apple will allow Spotify to use alternative payment methods in the EU. However, the iPhone maker will still collect a 17% commission if Spotify stays in the App Store and a base 50 euro cent "Core Technology Fee" per app install per year. Spotify CEO Daniel Ek has called these terms "unworkable," further emphasizing the ongoing tension between the two companies.
