Home » Why the European Commission accepted Spotify’s claim and fined Apple approximately 290 billion yen | WIRED.jp

Why the European Commission accepted Spotify’s claim and fined Apple approximately 290 billion yen | WIRED.jp

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Why the European Commission accepted Spotify’s claim and fined Apple approximately 290 billion yen | WIRED.jp

The European Commission has fined Apple 1.8 billion euros (approximately 290 billion yen) based on complaints from music streaming service Spotify.

The battle between Apple and Spotify has been going on for years. Spotify has accused Apple of stealing users from Apple’s iTunes and stifling innovation by abusing the tech giant’s dominance.

In a long-running conflict, each side has invaded the other’s territory. For example, in 2015, Apple launched its own music streaming service, Apple Music. Spotify argued that Apple was able to lower Apple Music fees because it doesn’t have to pay the same App Store fees as its competitors. And in a more direct challenge to Apple, Spotify began an ambitious investment in podcasts in 2019, spending big on high-profile programming.

In the early stages of the conflict, both companies took a moderate stance, with little harsh words exchanged in public. “We’re concerned about the dehumanization of music,” Apple CEO Tim Cook said in 2018, a cryptic comment that Spotify It is widely interpreted as a mockery of the company’s frequent use of the word “recommended”.

But as European Union politicians began pushing for legislation to regulate big tech companies, Spotify became more outspoken. The European Commission’s 1.8 billion euro fine against Apple announced on the 4th shows that the tactic is working.

Details of Apple’s “abuse of dominant position”

The fine comes after Spotify went to the European Commission in 2019 to challenge the restrictions and fees Apple imposed on developers offering apps on its App Store.Complaint filedIt originates from. The European Commission on Tuesday ruled against Apple’s App Store restrictions, saying they amounted to unfair trading conditions and may have led to iOS users paying significantly higher prices for music streaming subscriptions. Agreed.

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European Commission Commissioner for Competition Policy Margrethe Vestager said:statement“For a decade, Apple has abused its dominant position in the market for distributing music streaming apps through the App Store,” and added, “Apple has abused its dominant position in the market for distributing music streaming apps through the App Store.” “They’ve done that by restricting developers from letting consumers know that music services exist.”

Apple’s App Store rules restrict music streaming companies and other apps from telling users of Apple devices how to upgrade or sign up for subscriptions outside of the app. Instead, app users will only see the option to sign up for an in-app subscription via Apple’s payment system.

Since Apple charges fees for payments made through Apple’s system, prices are likely to be higher. Some app developers, including Spotify, don’t offer in-app purchases because they don’t want to pay these fees.

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