In an unprecedented move, Apple has announced its plans to appeal the record-breaking €1.84 billion fine imposed by the European Commission, regarding the tech giant’s alleged anticompetitive actions within the streaming music market.
In a post published on their newsroom page, Apple acknowledged Spotify, a Sweden-based company, as the “chief proponent” and “largest benefactor” of the EC’s verdict. This acknowledgment comes as a result of Spotify’s dominating 56% share in the European streaming music market.
The multinational company, headquartered in Cupertino, had already taken a stand against Spotify in the days leading up to the Commission’s decision, stating that the complaint made by Spotify was an attempt to gain unrestricted access to Apple’s resources without any monetary compensation.
Furthermore, Apple has also disclosed confidential details about Spotify’s operations on Apple’s platforms, revealing that the streaming service has utilized “thousands” of Apple’s APIs across 60 different frameworks. Additionally, it was noted that Spotify has tested its apps through Apple’s Testflight platform and has submitted more than 420 app versions for review. The app has also been downloaded, re-downloaded, or updated an astonishing 119 billion times on Apple devices.
Responding to the EC’s fine, Apple highlights the sheer size of Spotify’s business, as well as the European digital music market as a whole, which has seen a significant growth from 25 million subscribers in 2015 to nearly 160 million in 2022.
Apple emphasized once again that Spotify does not pay the company anything in terms of App Store commissions, as its subscriptions are only available for purchase on Apple’s website. This is the crux of Spotify’s argument – it wants the ability to communicate directly with its customers, offering various promotions and discounts within its iOS app. However, Apple’s anti-steering regulations have prevented this in the past, and although an exception was introduced in 2022 for “reader apps” like streaming services, Apple maintains control over who can utilize this exception instead of openly permitting links.
Contrary to Apple’s stance, Spotify has not taken advantage of the “reader app” exception, the company claims, but rather is attempting to manipulate the rules in its favor by including subscription prices in its app without utilizing the In-App Purchase system offered by the App Store.
“They want to utilize Apple’s technology and resources, distribute their app through the App Store, and reap the rewards of the trust we have established with our users – all without compensating Apple in any way,” states Apple. “To put it simply, Spotify wants more.”
While Apple holds great respect for the European Commission, the company firmly believes that the facts do not support the decision, leading to their plan of appealing the ruling.
“Every single day, our teams at Apple work tirelessly to keep that dream alive,” Apple shared. “We achieve this by ensuring that the App Store remains the most secure and optimal platform for our users, providing developers with the necessary resources to create exceptional apps. Most of all, our purpose is to facilitate app innovation, empowering and improving the lives of people.”
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