The European Commission is expected to rule on Spotify’s complaint regarding competition in the streaming music market. According to the Financial Times, the ruling is anticipated to be unfavorable for Apple, resulting in a potential fine of around €500 million (approximately $539 million USD).
Despite the significant fine, Apple is not accepting it as the cost of doing business and is instead publicly defending its position. In a statement released by Apple, the company refutes Spotify’s claims of being harmed by anticompetitive practices. Apple points out that Spotify holds a 56% share of the market compared to other music streaming platforms, indicating that there is healthy competition in the market.
Furthermore, Apple has shared detailed information about the collaboration between Spotify and Apple’s platforms, highlighting the various ways in which Apple has supported Spotify. The company also emphasizes the beneficial aspects of its in-app purchase system and believes that Spotify is leveraging regulations to increase its profits.
The European Commission’s investigation is not solely focused on Spotify’s complaint but also concerns the impact of Apple’s App Store on the overall music streaming market. Apple’s response to the EU’s Digital Markets Act regulations includes a new system requiring developers to pay for its services beyond just App Store payment processing.
Apple disputes Spotify’s claims of being harmed by anticompetitive practices, pointing to Spotify’s consistent growth and profitability, as well as its ability to link directly to its website for account creation and payment, similar to Netflix. However, it is clear that Spotify is facing competition from Apple Music on iOS globally.
Additionally, Apple highlights the extensive collaboration between Spotify and the European Commission on the complaint but indicates that the investigation has been ongoing for years.
At this time, the EC has declined to comment on the potential fines, and Spotify has not provided an immediate response. The situation is still evolving, and further updates may be forthcoming.
Additional reporting: Natasha Lomas
