European Audio Streaming Group Urges EU to Reject Apple's Proposed Solution
A group of European audio streaming companies, including Spotify and Deezer, has appealed to the European Commission to dismiss Apple's proposed remedy for complying with a hefty €1.8 billion fine. The group, Digital Music Europe, argues that Apple's new music streaming regulations are biased, compelling competitors to participate in a system controlled by Apple. The European Commission had previously determined that Apple's App Store rules concerning music streaming services, such as Spotify, were unfair, as they prohibited these apps from informing users about more cost-effective alternatives outside the app. Despite Apple's proposed solution allowing streaming services to incorporate links to their websites for alternative payment options, the hefty 27% commission Apple would levy on such transactions has drawn criticism. Furthermore, Apple recently turned down a new version of Spotify's iOS app featuring in-app pricing information for EU users, after Spotify declined to embrace Apple's proposal.
Key Takeaways
- Digital Music Europe opposes Apple's proposed remedy for the EU's App Store case.
- Apple's new entitlement for music streaming services is considered discriminatory.
- EU fined Apple €1.8 billion in March for abusive App Store rules for music streaming providers.
- Apple's new measures allow music streaming apps to inform users of other payment options.
- Apple proposed a 27% commission on transactions made via a link outside the App Store.
- Apple rejected Spotify's new iOS app version with in-app pricing information for EU users.
- EU's March order required Apple to allow music streaming providers to inform users of cheaper options available outside of the app.
Analysis
The rejection of Apple's proposed solution by Digital Music Europe, which includes Spotify and Deezer, has the potential to escalate the EU's antitrust case against Apple. The newly implemented music streaming rules, perceived as discriminatory, could perpetuate Apple's competitive advantage, impacting the growth and user experience of other streaming services. The hefty fine and the mandate to inform users about external payment options could jeopardize Apple's market position, potentially posing short- and long-term challenges to its ecosystem and financial performance. This development is likely to have a ripple effect on the app store policies of other tech giants, subsequently reshaping the terrain of digital markets and mobile payments.
Did You Know?
- Digital Music Europe (DME): DME is a trade association representing the interests of digital music service providers in Europe. Its members include popular music streaming platforms such as Spotify and Deezer. DME plays a crucial role in advocating for fair competition and consumer choice in the digital music market.
- Apple's proposed solution and 27% commission: In response to the €1.8 billion fine imposed by the European Commission, Apple proposed a new entitlement for music streaming services. This entitlement allows streaming apps to inform users about alternative payment options outside the app, but Apple would still charge a 27% commission on such transactions. This proposal has been criticized by DME for being discriminatory and maintaining Apple's dominant position in the market.
- EU's March order and App Store rules: In March, the European Commission found Apple's App Store rules for music streaming providers to be abusive, restricting these apps from informing users about cheaper options outside the app. The order required Apple to allow music streaming providers to inform users of cheaper alternatives available outside of the app. Apple's recent rejection of Spotify's new iOS app version with in-app pricing information indicates ongoing tension between Apple and music streaming platforms over these regulations.