Apple is facing anti-trust action in the European Union over allegations of anti-competitive practices related to its App Store business model.
The announcement of the European Commission is as follows Complaint from Spotify in 2019 Developers require more than 30% of some in-app purchases on the so-called “Apple Tax”. If convicted, Apple could face heavy fines or be forced to change tack in the European Union.
An election commission statement said its preliminary findings suggest Apple is distorting competition, while anti-trust regulator Margaret Vesteger claims that “consumers are losing.”
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The Election Commission statement stated: “Apple’s rules increase competition in the market for music streaming by increasing the cost of competitive music streaming app developers. This in turn gives consumers a higher price for their in-app music subscription on iOS devices. “
Apple has already responded to the allegations, claiming that Spotify’s demands are unrealistic and Apple Music accuses the rival that it wants the benefits of the App Store without compensating the facilitator. It also states that it did not receive any payment for 99% of Spotify Premium customers on its platform.
In a statement, Apple said: “At the core of the case is Spotify’s demand that 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 pay anything for it. The Commission’s argument on behalf of Spotify is contrary to fair competition. “
This case fights on the same front as the Epic Games in the United States. The company that made Fortnite says it was removed from the App Store last year after trying to set up its own in-app store front by bypassing the Apple mechanism.
Epic also believes that Apple is hurting competition by making a 30% cut for Apple purchases, which Apple has reduced to 15% for developers on revenue under one million dollars.