Apple has gotten accused by the European governors of infringing the antitrust law of the EU.
They say that the Apple app store manages restricted rival music services unfairly.
On Friday, the European Commission’s head antitrust official said that when it comes to their competition law, it has gotten breached by Apple, as the company is charging high commission fees from app developers and does not allow them to tell users about more affordable alternatives.
In a press conference with reporters she said:
“Our preliminary conclusion is that Apple abused its dominant position for the distribution of music streaming apps through its app store and distorted competition in the music streaming markets.”
Last June, after the giant music and Podcast Company Spotify put out a complaint, it got the European Commission to start an investigation of Apple.
In a statement on Friday, the Commission said that it does not agree to Apple’s in-app purchase system use that gets applied of streaming services.
Furthermore, there are concerns regarding apple and how it applies particular restrictions on apps, which stops them from letting iPad and iPhone users know of alternative buying options.
In a statement, Vestager said:
By doing this “users get deprived of cheaper music streaming options and deceive competition.”
The Commission got praised by Daniel Ek, the CEO of Spotify, took to Twitter, tweeting:
“Fairness is the key to competition.”
He further added:
“We are one step closer to creating a level playing field, which is so important for the entire ecosystem of European developers.”
When it comes to the latest developments in various high-profile battles between Big Tech Companies and European Union, it ended with heavy penalties.
Apple could get fined up to 10% of its yearly sale if the company gets found guilty of violating the competition rules.
On Friday, in a statement, Apple said:
“Commission’s argument on Spotify’s behalf is the opposite of fair competition.”
Further, the company added:
“At the core of this case is Spotify’s demand they should be able to advertise alternative deals on their iOS app, a practice that no store in the world allows. Once again, they want all the benefits of the App Store but don’t think they should have to pay anything for that.”
Apple can write back to the Commission and request a hearing.
Usually, it takes years for the European Union to carry and come to a conclusion on an antitrust case.
The Big Tech companies should be careful of Europe as they have turned into a cop for such companies, and huge American companies are getting hammered huge penalties.
Last year, Amazon got hit by antitrust charges by the European Union for violating its dominance in online shopping.
Google has also gotten struck by various antitrust penalties and investigations.