Apple faces fines of up to $ 27 billion
Apple faces fines of up to $ 27 billion

Concerned about the App Store behavior, the European Commission has filed a monopoly lawsuit against Apple.

The Commission found Apple violated EU competition rules to direct its app store after filing an initial complaint with Spotify in 2019.

According to the European Commission, Apple has a dominant position in the distribution of music-streaming apps via the App Store.

The European Union is focusing on two rules that Apple impose on developers:

    Mandatory use of in-app purchases from Apple (30% off).
    Prevent app developers from notifying users of other out-of-app purchase options.

The expert panel found that a 30% commission (often referred to as an Apple tax) raises consumer prices.

According to the European Commission, most broadcasters pass these costs onto users through price increases.

"Apple rules disrupt competition in the market for streaming music services by increasing costs for competing music streaming app developers," said a statement from the European Union.

The European Union has also objected to Apple, which is in fact a European Commission list stating that the company has violated competition rules.

This is the first official step in the antitrust action against Apple, and the company has an opportunity to respond to the committee's list of objections.

If Apple violated European regulations, it would be fined up to 10% of its annual sales. With annual sales of $ 274.5 billion last year, Apple could reach $ 27 billion.

Apple may also have to change its business model, which is disruptive, persistent, and far from perfect.

Spotify welcomed the initial allegations, saying that ensuring the normal functioning of the iOS platform was an urgent and important task.

"The opposition to the European Commission is an important step in investigating Apple's anti-competitive behavior to ensure that Apple offers meaningful options for all consumers and a level playing field for app developers," she added.

Apple said in a statement: Spotify has become the largest music subscription service in the world. Spotify pays us no commission for more than 99% of our subscribers. A 15% commission is paid to the remaining subscribers who receive music through this channel. In the app store.

She added: The crux of this issue is that Spotify has to announce other transactions through its iOS app. This is a practice that no business in the world allows for and everyone wants to take advantage of the App Store without having to pay for it. .

In the face of growing opposition to the App Store, iPhone manufacturers have relaxed some guidelines last year.

Apple is now allowing some video streaming apps to bypass App Store commissions and lower the App Store commission rate to 15% for all developers with annual sales under $ 1 million.

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