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The European Commission thinks Apple is putting too many restrictions on music streaming services. This is what the European competition authority found in a modified lawsuit against the
The European Commission thinks Apple is putting too many restrictions on music streaming services. This is what the European competition authority found in a modified lawsuit against the iPhone manufacturer. In particular, the stipulation that streaming services are not allowed to inform their customers in the app about other options for concluding a cheaper subscription is, in the opinion of the committee, an abuse of Apple’s market power.
Since April 2021, the Commission has been investigating possible abuses by Apple of its dominant position in the market for music streaming services. It also has its own streaming service with Apple Music. In a modified indictment, she has now refined the focus. The Commission’s focus is now no longer on the actual obligation it imposes on developers to offer their iPhone and iPad music streaming services via the App Store, but on the contractual restrictions.
While the investigation is ongoing, the Commission believes Apple’s way of working violates Article 102 of the European Treaty, which expressly prohibits “unfair contract terms”. Specifically, the commission says that the ban on informing consumers about alternative, cheaper streaming services is not necessary to secure the App Store on iPhones and iPads, that these consumers run the risk of having to pay more for their music streams and such Furthermore, restricting their freedom of choice harms the developers themselves.
It was Swedish Spotify that filed a lawsuit against Apple a few years ago. The Commission does not set a deadline for completing its investigation. If it finds it proven that Apple has in fact abused its market dominance, it could fine the company 10 percent of its annual revenue.
Since April 2021, the Commission has been investigating possible abuses by Apple of its dominant position in the market for music streaming services. It also has its own streaming service with Apple Music. In a modified indictment, she has now refined the focus. The Commission’s focus is now no longer on the actual obligation it imposes on developers to offer their iPhone and iPad music streaming services via the App Store, but on the contractual restrictions. While the investigation is ongoing, the Commission believes Apple’s way of working violates Article 102 of the European Treaty, which expressly prohibits “unfair contract terms”. Specifically, the commission says that the ban on informing consumers about alternative, cheaper streaming services is not necessary to secure the App Store on iPhones and iPads, that these consumers run the risk of having to pay more for their music streams and such further restricting their freedom of choice harms the developers themselves. It was the Swedish Spotify that filed a lawsuit against Apple a few years ago. The Commission does not set a deadline for completing its investigation. If it finds it proven that Apple has in fact abused its market dominance, it could fine the company 10 percent of its annual revenue.
Source: Data News
As an experienced journalist and author, Mary has been reporting on the latest news and trends for over 5 years. With a passion for uncovering the stories behind the headlines, Mary has earned a reputation as a trusted voice in the world of journalism. Her writing style is insightful, engaging and thought-provoking, as she takes a deep dive into the most pressing issues of our time.
