Apple is off the hook as far as its policy for in-app purchases in streaming apps is concerned. Brussels continues to investigate because Apple allegedly restricts streaming app developers from informing users about cheaper subscriptions outside of the app.
The European Commission has Apple as part of the ongoing antitrust dispute new Statement of Objections delivered. It is intended to clarify the concerns of the competition authorities about the app store rules for music streaming providers. Specifically, the EU is now limiting itself to one objection in the further proceedings.
So far, the Commission’s “preliminary view” has been that Apple is abusing its dominant position in two areas. On the one hand, Apple is said to impose its own payment technology for in-app purchases on the developers of music streaming apps; on the other hand, it should limit the ability of app developers to inform users of mobile Apple devices about alternative streaming subscriptions.
EU criticizes limited information options
With the new notification, the EU now says it is clear “that the Commission will no longer deal with the examination of the legality of the obligation in relation to in-app purchases in the context of this antitrust investigation.” With regard to the restrictions, However, the iPhone manufacturer is not yet off the hook when it comes to informing users about alternative and, above all, cheaper options for informing subscriptions outside of the app.
“The Commission’s preliminary view is that Apple’s information restriction obligations constitute unfair trading conditions and are therefore in breach of Article 102 of the Treaty on the Functioning of the European Union (TFEU),” the EU said in a press release -Commission.
Apple continues to face fines in the billions
The EU argues that these restrictions are neither necessary nor proportionate in order to be able to offer the Apple App Store on iPhones and iPads. In addition, consumers may have paid more for a streaming subscription due to the restrictions. In addition, the EU assumes that Apple’s behavior will limit the choice of music streaming apps for consumers.
The formal proceedings against Apple were initiated in June 2020. In April 2021, the Commission first sent its statement of objections to Apple, to which the Cupertino-based company responded in September 2021. According to the EU, the new statement of objections replaces the original April 2021 statement.
According to the EU Commission, it is still unclear when the procedure will be completed. However, if the antitrust authorities come to the conclusion after completing their investigation that “sufficient evidence of infringement exists”, Apple faces a fine of up to 10 percent of its worldwide annual turnover. The balance sheet for fiscal year 2022 shows net sales of $394.3 billion.