Spotify accuses Apple of busting EU rules
March 13, 2019 | Wednesday
Spotify, the music streaming giant files a complaint against Apple company. That regards with the European Commission's antitrust regulations. According to Spotify, Apple Music takes an "unfair advantage" over its rivals.
On Wednesday, a blog post was published by Daniel Ek, Spotify CEO. Ek talks on Apple's control of its App Store denies consumers of their choices and putting unfair restrictions. That includes fees on competitors. According to Ek, upon failing to resolve the issue with Apple, Spotify now looks for action coming from the European Commission.
Ek in a post said, “In recent years, Apple has introduced rules to the App Store that purposely limit choice and stifle innovation at the expense of the user experience—essentially acting as both a player and referee to deliberately disadvantage other app developers."
Apple Music was launched in 2015 by Apple to compete with the streaming service which now has huge users, Spotify. Ek said Apple requires their app, Spotify, and other digital services to pay thirty percent tax upon purchase transaction through Apple's payment system. Moreover, Ek explains that the fees make it harder for Spotify on keeping its price competition against Apple Music. Ek also points out other applications on App store that aren't subject to the "Apple tax." That includes Uber and Deliveroo.
Furthermore, Ek accuses Apple of blocking Spotify including its other competitors from Apple's services. That for instance are Siri, Homepod and Apple Watch.
Spotify also says it was to launch its complaint in EU and not in the United States because of the company's main office is in Stockholm, Sweden. Additionally, Spotify points out that the company went public on the New York Stock Exchange with an unusual direct listing in 2018.
Elsewhere, the European Commission takes a tough stance on the issue in which involves two big tech companies. Just last year, it imposed a $5 billion fine on Google upon violating antitrust rules.
Meanwhile, European spokesperson says, “The Commission has received a complaint by Spotify, which we are assessing under our standard procedures."