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EU reportedly wants to settle Apple-Spotify dispute in Spotify's favor

Spotify and Apple have been feuding with each other for some time and now some of the disputes between the companies appear to be settled in the EU. EU regulators are reportedly planning to sanction Apple over App Store terms that make it impossible for Spotify to promote subscriptions outside the App Store. This possible decision by the EU could help not only Spotify, but also many other software providers that offer subscriptions for their services.

In early 2021, the European Commission began filing anti-trust charges against Apple after finding that the company may be abusing its dominant position when it comes to music streaming apps. At the beginning of this year, some charges were dropped and the focus was on the fact that Apple is prohibited from alerting users to, often cheaper, alternative payment methods for subscriptions outside the iOS app. According to Bloomberg, European regulators are still finalizing the i’s, but a formal decision is expected early next year.

Thanks to EU regulations, the iPhone 15 comes with USB-C instead of a Lightning port

There is a good chance that the EU will order Apple to stop banning the promotion of alternative payment methods on iOS and that the company could face a hefty fine. A fine could potentially amount to as much as 10 percent of Apple’s global profits, which in Apple’s case could mean as much as $40 billion. However, the fine will most likely be much lower, as the EU wants to stop anti-competitive behavior by companies in particular. Previously, rules within the Apple ecosystem were slightly relaxed following an anti-trust investigation in Japan. This now makes it possible to place links within apps to your own subscription payment services, so it is only prohibited to actively promote them. In the US, there is a similar lawsuit against the company started by Epic Games. Apple recently also made USB-C the standard in all its mobile devices, following obligations from the EU. It is not unlikely that this ruling could also have a decisive effect on Apple’s global App Store policy.

Source: engadget


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