Apple responds to CE: fine lacks evidence and seeks to favor Spotify

The technology giant Manzana said this Monday that the fine of US$ 1,953.6 million that the European Commission (EC) for applying restrictions from its App Store to competitors of its music service in ‘streaming‘It is not supported by evidence and seeks to favor the Swedish company Spotify.

Brussels also ordered the apple company to withdraw these restrictions and to refrain from adopting similar practices in the future.

“The decision was made despite the Commission’s failure to uncover any credible evidence of consumer harm, and ignores the realities of a market that is prosperous, competitive and rapidly growing,” the company led by Tim Cook says in a statement.

The apple company, which after the news saw its shares fall more than one 2%indicates that “the biggest beneficiary” of the EC measure is the Swedish company: “Spotify has the largest music streaming app in the world and has met with the European Commission more than 65 times during this investigation.”

Apple highlighted today that Spotify does not pay it anything “for the services that have helped it become one of the most recognized brands in the world.”

Apple charges its competitors a commission of 30% about the subscription plans they offer users, plans that they have only been able to access through the App Store. Competitors then pass this price premium on to users, thus making alternative options more expensive than Apple Music, the application itself that is installed by default on iPhones and iPads.

For its part, Brussels considers the fine “proportional to Apple’s global revenue” (assumes a 0.5% of your annual billing).

The Executive Vice President of the European Commission responsible for Competition, Margrethe Vestag, pointed out today that, for a decade, Apple has abused its dominant position in the market for the distribution of music streaming services through the App Store.

“It is illegal and has impacted millions of European consumers who have not been able to choose freely,” Vestager explained.

Brussels has considered that Apple has a dominant position in the market because the only way for iPhone or iPad users to download online music applications, such as Spotify – which was the one who filed the complaint in 2019 – is through its own store, the App Store.