The European Commission filed antitrust accusations against Apple in 2021 after determining that the corporation was abusing its dominant position in music streaming applications. The commission gave the tech giant a Statement of Objections outlining the problems it feels should be investigated further. The EU’s executive authority underlined its complaints with Apple in it, including forcing developers to use its payment system and prohibiting them from informing users about alternate (and frequently cheaper) payment alternatives outside of iOS applications. The EU has now said that its antitrust inquiry would focus only on the second concern, or the “anti-steering responsibilities” imposed by Apple on developers.
With its amended Declaration of Objections, the firm abandons its stance on the legality of forcing developers to utilise its in-app payment mechanism. Instead, it’s focusing only on the anti-steering claims, claiming fears that Apple’s policy hinders developers from informing consumers about lower subscription costs elsewhere.
According to the commission, these anti-steering measures placed on developers violate Article 102 of the Treaty on the Functioning of the European Union (‘TFEU’). It noted that the requirements are “neither essential nor appropriate for the provision of the App Store for iPhones and iPads,” that they are harmful to Apple consumers who would likely wind up paying more, and that they harm music streaming software providers “by reducing effective consumer choice.”
This antitrust action arose from a complaint Spotify filed against Apple in 2019, in which it accused the tech giant of discriminatory conduct intended to discourage rivals to Apple Music. If the commission finds that Apple has violated antitrust laws, it may ban the illegal behaviour — in this instance, barring developers from directing customers to other payment choices — and punish the business up to 10% of its global annual revenue.
According to The Wall Street Journal, Apple is delighted that the scope of its case has been limited and expects that the commission will “stop its pursuit of a complaint that has no validity.”
