The EU Competition Commission decided to accuse Sweden’s streaming music service provider Spotify in the coming weeks. Apple has unfair competition and officially launched an anti-monopoly investigation against Apple.
Just ending the patent dispute with Qualcomm, Apple is now facing an EU antitrust investigation a report said.
In March of this year, Spotify officially filed a complaint with the European Union, claiming that Apple abused its App Store’s rights to make Apple Music (Apple Music service unfair advantage).
Spotify pointed out that Apple extracted a 30% share from the content provider that purchased the system using the App Store (15% in the second year) and could not direct users to subscribe to external sites. This policy caused Spotify to lose a lot of revenue.
“Apps should be fair to competition, not based on who owns the App Store, and we should all follow the same fair rules and restrictions, including Apple Music,” said Spotify founder and CEO Daniel Ek.
Spotify also said that its application updates are often blocked by Apple and are excluded from Apple services such as Siri, HomePod and Apple Watch. In addition, Apple has blocked activities such as special offers between Spotify and its customers.
The website also found that the Spotify paid subscription service consists of three forms; the mainstream service is Spotify Premium, which is priced at $9.99 per month. Users can play any type of song on demand.
SpotifyFamily is a family version of Premium, priced at $14.99 per month, allowing up to six family members to share Premium subscriptions.
In addition to the two paid subscription methods described above, Spotify also offers a Premium subscription for students, which offers full Premium subscriptions at half the price.
Later, Apple issued a statement on its official website on March 14th, rejecting Spotify’s claim, denying the idea of favoring its own Apple music service, and said that it has treated all application developers equally.
Apple believes that Spotify is ambitious of “financial motivations”. After years of significant development of its business with the App Store, Spotify seeks to retain all App Store revenue without making any contribution to the platform.
The company also pointed out that in the service of providing music services to consumers, Spotify provided less and less benefits to composers, lyricists and musicians, and even brought these creatives to court.
According to another report, Apple also said that it is talking with Spotify about Airplay and Siri integration. It is worth noting that the above survey coincides with the rise of future competition between Apple and Spotify for the music industry.
As the leader in the streaming music market, Spotify paid subscribers reached 100 million last month. In contrast, Apple Music’s paying users have just exceeded 40 million.
It is still not clear whether the above survey can lead to the results Spotify wants from EU. However, once the lawsuit wins, it will have a major impact on Apple, also it might make Apple’s content subscription shrink or even disappear.