The years-long dispute between Apple and Spotify reached a climax when the EU Commission imposed a record fine of 1.8 billion euros on the tech giant. The accusation was that it had abused its dominant market position through opaque commission rules in the App Store.
The discussion about the commission rules in the App Store is not new, but it has become increasingly intense in recent years. While Apple demands a considerable share of up to 30 percent for transactions via the App Store, Spotify is at the center of this dispute.
Criticism of Apple's commission rules
The App Store's commission rules have sparked heated debates. Developers, especially Spotify, criticize the unequal treatment compared to Apple services such as Apple Music. While Apple Music is exempt from commissions, other streaming services such as Spotify have to pay the full 30 percent to Apple. In addition, the affected developers are prohibited from pointing out cheaper, external offers outside the App Store. The EU Commission has now ruled that Apple's actions violate antitrust law. With a fine of 1.8 billion euros, the EU accuses the company of abusing its dominant market position and distorting competition.
Cupertino's defense and announced appeal
Despite Apple's argument that the commission rules have no direct impact on end customers, the EU Commission supports Spotify's position and shows how such practices can hinder competition and innovation. In response to the record fine quit Apple has announced that it will appeal. The company emphasizes that Spotify was unable to provide convincing evidence of anti-competitive behavior on Apple's part. Apple accuses Spotify of "losing touch with reality" and emphasizes that it has tried to reach an agreement in numerous discussions with the EU Commission. (Photo by bigtunaonline / Bigstockphoto)
