Apple faces €500 million fine over Spotify complaint in 2019

It has been revealed that Apple may be fined 500 million euros ($539 million) by the European Commission financial times on Sunday. According to reports, the American company deliberately pushed Apple Music on the App Store in favor of other music platforms such as Spotify.

The complaints against the Swedish audio streaming platform date back to 2019, when Spotify complained that Apple Music as a platform did not pay royalties to the parent company and did not face the same onerous conditions as third-party services.

Apple later tried to deny the accusations and issued a rebuttal, but it didn’t sound that convincing.

Apple faces €500 million fine over Spotify complaint in 2019

The EU initially hoped to fine Apple up to 10% of global turnover, a fine of approximately $40 billion, which would shock the technology world.

The main problem is that Spotify has to pay Apple tax, which is 30% of all transactions (in this case, $3 for every $10 Premium subscription). While Cupertino says this only applies to the first year of subscription and then the share drops to 15%, it doesn’t affect returning customers who unsubscribe and sign up again at a later stage.

Apple also claims that Spotify wouldn’t be successful if it weren’t for a “free” app on the App Store, and the app isn’t free for developers – they still have to pay a fee to use a developer account.

This conflict is also the main reason why Spotify has not launched in-app purchases yet. If Apple complies with the DMA (Digital Markets Act), European users may be the first to experience the new features, but this is another open front where the two companies are clashing.

source



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *