Brussels Accuses Apple of Violating EU Competition Rules The European Commission has formally accused Apple of violating antitrust rules by restricting competition in the mobile music streaming market. The charges stem from a long-running investigation into Apple’s practices related to its App Store, which is the only way to download apps onto Apple devices. According to the Commission, Apple has engaged in anti-competitive practices that have resulted in higher subscription prices for music streaming services and limited consumer choice. Specifically, the Commission has accused Apple of: * Requiring music streaming services to use Apple’s own in-app payment system: This system charges a 30% commission on all subscription purchases, which has led to higher prices for consumers. * Restricting rival streaming services from promoting their own offers: Apple has reportedly prevented rival services from informing users about alternative subscription options or discounts outside of the App Store. * Limiting the ability of rival streaming services to compete on price: Apple has allegedly prevented rival services from offering lower prices or discounts on their subscriptions within the App Store. The Commission argues that these practices have hindered competition, reduced innovation, and resulted in higher prices for consumers. Margrethe Vestager, Executive Vice-President of the European Commission for Competition, stated: “Our preliminary finding is that Apple is abusing its dominant position in the music streaming market. By restricting competition, Apple deprives users of truly innovative music streaming services and distorts competition.” Apple has vehemently denied these accusations. The company claims that its App Store policies are necessary to protect consumers and maintain a secure ecosystem for both users and developers. Apple also argues that the 30% commission rate is industry-standard and that it invests heavily in providing a secure and user-friendly platform. The Commission’s investigation is still ongoing, and Apple has the opportunity to respond to the charges and provide its own evidence. If the Commission ultimately finds that Apple has violated competition rules, it could face significant fines and be required to change its practices. The outcome of this case could have implications for other large technology companies that operate similar app stores, as well as for the future of competition in the digital economy.Unlock Editor’s Digest NewsletterUnlock Editor’s Digest Newsletter *Unlock Roula Khalaf’s curated selection of top stories for free.* EU Accuses Apple of Stifling Competition, First Use of Digital Market Rules on Big Tech The European Union has accused Apple of stifling competition in its app store, marking the first use of new digital rules on a large technology group. Under the Digital Markets Act (DMA), Apple faces fines of up to 10% of its global revenue if convicted. The commission is also investigating whether Apple’s developer fees violate the bloc’s rules. Concerns over Developer Restrictions Brussels is concerned about the restrictions Apple places on developers’ ability to freely direct their customers. The investigation will examine whether Apple imposes excessive restrictions on users downloading and installing alternative app stores. Apple Responds Apple has stated that it has complied with the DMA by making changes to its practices. The company believes that over 99% of developers will pay the same or less in fees under the new terms. Apple’s Compliance Efforts In January, Apple introduced changes to its iOS software, app store, and Safari browser to address competition concerns. The company has also delayed the introduction of AI-enabled features in the EU due to uncertainties created by the DMA. EU Scrutiny of Apple Apple has faced increasing scrutiny from EU regulators. In 2023, the company was fined €1.8 billion for stifling competition from music streaming rivals. Apple is contesting the fine in court. Additional Reading * [Apple Accused of Stifling Competition by EU](https://www.ft.com/content/655b207e-8505-442c-8e04-b96e4d351465) * [EU Investigates Apple’s Developer Fees](https://www.reuters.com/technology/eu-investigates-whether-apples-developer-fees-breach-rules-2023-03-06/)Brussels has accused Apple of violating EU competition rules by restricting rivals’ access to its mobile payment system, Apple Pay. The European Commission, the EU’s antitrust authority, said in a statement that Apple’s conduct has “limited competition in the market for mobile wallets on iOS devices” and has led to “higher prices, less innovation, and less choice for consumers.” The Commission alleges that Apple requires app developers to use Apple Pay as the only option for making in-app purchases on iOS devices, and that it restricts access to key features of Apple Pay for rival mobile wallets. Apple has denied the allegations, saying that it does not have a dominant position in the market for mobile wallets and that its policies are necessary to protect consumers’ data and privacy. The Commission’s investigation into Apple’s mobile payment practices began in 2020 following a complaint from Spotify. The Commission said that its preliminary findings suggest that Apple has infringed Article 102 of the Treaty on the Functioning of the European Union, which prohibits the abuse of a dominant position. The Commission has sent a Statement of Objections to Apple, outlining its concerns. Apple has two months to respond to the Statement of Objections and to present its defense. If the Commission finds that Apple has violated EU competition rules, it can impose fines of up to 10% of Apple’s annual global turnover. The Commission can also order Apple to change its practices to ensure that they comply with EU law.