Apple, huge fine from European Commission for music streaming abuse

The European Commission fined Apple more than 1.8 billion euros for abusing its dominant position in the market for distributing music streaming applications to iPhone and iPad users through its App Store. The EU executive communicates this. In particular, the Commission found that Apple restricted app developers from informing iOS users about alternative, cheaper music subscription services available outside of the app, an illegal practice under iOS antitrust rules. .

Apple, the Commission notes, is today the only provider of an App Store where developers can distribute their applications to iOS users across the European Economic Area (EEA). Apple “controls all aspects of the iOS user experience and establishes the terms and conditions that developers must comply with to be present in the App Store and to be able to reach iOS users on See.” The Commission’s investigation concluded that Cupertino prohibits creators of music streaming applications from fully informing iOS users about alternative, cheaper music subscription services available outside of the application and from providing instructions on how to subscribe to these offerings. In particular, the provisions prohibit application developers from informing iOS users in their applications about the prices of subscription offers available on the Internet outside of the application; prohibit informing iOS users in their apps about price differences between app subscriptions sold through Apple’s app purchasing mechanism and those available elsewhere.

They also prohibit the inclusion of links in their apps that direct iOS users to the app developer’s website, where alternative subscriptions can be purchased. App developers were also prevented from contacting newly acquired users, for example via email, to inform them of alternative pricing options after they created an account. Today’s ruling concludes that Apple’s so-called “anti-steering” provisions constitute unfair trading conditions for the Commission, in violation of the TFEU. These provisions “are neither necessary nor proportionate to protect Apple’s commercial interests in relation to the App Store on Apple mobile devices and negatively affect the interests of iOS users who cannot make informed and effective decisions about where and how to purchase streaming subscriptions of music for use on your device.” For the Commission, Apple’s behavior, which lasted almost ten years, may have led many iOS users to pay much higher prices for music streaming subscriptions, due to the high commissions imposed by Apple to developers and passed on to consumers in the form of higher commissions.subscription prices for developers.

Source: IL Tempo

\