The ongoing battle between Apple and Spotify persists on European regulatory turf. Spotify, the Swedish music streaming giant, submitted a new version of its iOS application, including information about subscription prices purchased outside Apple’s payment system. However, Apple once again blocked the update.
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This latest incident aligns with recent antitrust decisions made by the European Union. These decisions aim to open up the closed ecosystem of the App Store and to rebalance the power dynamics between Apple and third-party developers.
Spotify Faces Apple’s Rejection Despite EU Orders
Following an EU ruling earlier this year, Apple is obligated to allow music streaming apps to feature external purchasing links. In response, Spotify updated its iOS app to display subscription prices bought directly from its service, bypassing Apple’s in-app purchase commission. However, Apple rejected Spotify’s update, insisting on using its authorization system and charging commission on external purchases.
Apple’s Resistance to EU Rules Evident
Apple’s refusal to comply highlights its resistance to the EU’s new regulations. Despite being obligated to allow developers to communicate freely with users, Apple seems determined to maintain control over the financial transactions of third-party apps. Spotify criticizes Apple’s stance, urging the Commission to enforce its decision for the benefit of consumers.
Antitrust Dispute Stalls Despite Fines
This latest clash adds to the longstanding dispute between Apple and Spotify, alongside other digital players. Apart from the specific antitrust proceedings regarding music streaming, Apple is under broader EU investigation for alleged anti-competitive practices on the App Store. Despite facing fines, Apple shows reluctance to fundamentally alter its ecosystem rules, prompting intervention from the European Commission.
DMA: An Additional Tool to Open Up Apple’s Ecosystem
Beyond the music streaming issue, Apple is also under scrutiny from the EU’s new Digital Markets Act (DMA). This legislation seeks to enforce structural changes on major digital platforms to enhance competition and innovation. However, Apple’s compliance with the DMA faces obstacles, with Spotify and others criticizing Apple’s proposed commissions as extortion. This ongoing struggle illustrates the challenges in getting Apple to adapt, even in the face of regulatory pressure.
Source: TheVerge