Sources: EU is set to press antitrust charges against Apple over App Store rules for competing music streaming services, following a complaint by Spotify

Brussels set to formally press charges alleging tech company used its dominance to squeeze out App Store rivals

Financial Times 2021-03-05 Javier Espinoza

Context & Ripple Effects

Spotify’s complaint over App Store fees had already prompted the EU to open an antitrust probe into Apple’s conduct in 2019. The expected charges mark the shift from investigation to a formal case over the terms facing music-streaming apps.

The dispute centers on whether App Store rules let Apple use its platform position against services that compete with its own music offering. Later coverage frames the remedy debate around anti-steering rules for music-streaming rivals, making this an early enforcement test of usable access to a mobile platform.

First-order effects

Apple faces a formal EU competition case over App Store treatment of competing music-streaming services, while Spotify gains a regulator-backed forum for its fee and access complaints.
Music-streaming apps subject to Apple’s in-app payment requirements gain a concrete basis to challenge rules that limit how they transact with or direct users.

Second-order effects

Apple’s App Store policies become a focal point for other developers whose services compete with Apple, increasing pressure to distinguish platform governance from self-preference.
A finding against Apple would strengthen rivals’ case for rules that let them communicate alternative payment options, rather than competing solely within Apple’s prescribed purchase flow.

Third-order effects

The case points toward competition enforcement focused on whether nominal app-store access is practically usable for a platform owner’s rivals, not merely whether those rivals are listed in the store.
If the EU converts its theory into enforceable anti-steering obligations, app-distribution policy may shift from a single platform-controlled transaction model toward more contestable customer relationships.

The trend: European platform enforcement is moving from scrutiny of app-store fees toward remedies targeting the rules that govern rivals’ access to users and payments.

Discussion

@senwarren Elizabeth Warren on x
Apple & Google's app platforms are a necessity for many small businesses & startups to exist - but they rig the rules to bulldoze competition and consolidate their power. It's time to loosen Big Tech's grip on our economy. Bills like this are a good start. https://www.protocol.co…
@vilile Vili Lehdonvirta on x
It's happening. One main complaint is that Apple's music app is able to undercut Spotify on prices because it doesn't have to pay the 15-30% “Apple tax” that Spotify sends to Cupertino. Platforms may eventually have to choose whether they are marketplaces or service providers. ht…
@benedictevans Benedict Evans on x
A small number of companies have suffered from the ways platforms do things - most obviously Yelp and Spotify. But Spotify is doing pretty well regardless, and so is startup creation. This is a pretty limited ‘kill zone’ https://twitter.com/...
@benedictevans Benedict Evans on x
There is going to be a great deal of regulation and court cases around tech. But I increasingly wonder: how much does any of this change our daily experience of the internet? 1/
@binarybits Timothy B. Lee on x
I feel like Arizona's vote yesterday didn't get the attention it deserved. Republicans voted overwhelmingly for anti-monopoly legislation targeting Apple, Democrats overwhelmingly opposed it. https://arstechnica.com/... https://twitter.com/...
@lanceulanoff Lance Ulanoff on x
I wonder if it's time for Apple to stop charging a 30% cut in markets, like Music, where it also directly competes. https://www.ft.com/...
@fosspatents Florian Mueller on x
Apple's broken record about the blessing that is the #AppStore whenever lawmakers, judges, or regulators disagree. If it's that good, why don't they allow alternative app stores and outcompete them on a level playing field? Because they prefer to abuse their gatekeeper position.
@dhh @dhh on x
This has been the absolute worst antitrust week for Apple! They lost in Arizona. The Netherlands announced they're done with their investigation and will rule on them shortly. House Antitrust Subcommittee is pouncing. States everywhere launching bills. BAD WEEK FOR CAPTAIN COOK!
@dhh @dhh on x
“This will be the first time the EU has brought formal charges against Apple, after opening up a series of antitrust probes into the company's business practices” 🔥🔥🔥 https://www.ft.com/...
@javierespft Javier Espinoza on x
Fresh of an initial investigation into Apple's business practices in the UK, Brussels is now getting ready to charge Apple of distorting competition in its App Store https://www.ft.com/...
@benedictevans Benedict Evans on x
Spotify: “Apple should not tell us how to make money!” Facebook: “Apple should not tell us how to make money!” What *exactly* is the set of rules that picks between these two?
@benedictevans Benedict Evans on x
It is really important to separate two principles: 1: Any random developer should not be able to do whatever they want on your phone 2: Apple should not be able to decide your business model The trouble is, now do privacy. The CMA is also investigating Chrome turning off cookies
@richardhavell Richard Havell on x
The CMA is investigating Apple's app store. The economics of this area is fascinating (multi-sidedness, network effects, monopolies sitting within competitive markets, etc), so sit tight for some excellent 3rd-party submissions and, eventually, analysis. https://www.gov.uk/...
@appfairness @appfairness on x
STATEMENT (1/2): We welcome the Competition and Markets Authority's (CMA) decision to open an investigation into Apple's unfair and anti-competitive behavior. For years, Apple has engaged in a broad array of harmful practices to the detriment of consumers and developers alike.
@dhh @dhh on x
“Apple said in a statement that it looks forward to working with the CMA”, lol. We just loooove all these investigations into our illegal monopoly practices, here at Apple 😂 https://www.bloomberg.com/...
@fosspatents Florian Mueller on x
Post-Brexit, the UK's #antitrust authority is more powerful than ever. I hope the #CMA will ultimately find that the #AppStore *is* indeed a monopoly (as a developer, I know this is the harsh reality), and combat #Apple's abuse. Same with #Google. @appfairness #OpentheAppStore ht…
@dhh @dhh on x
Another App Store Antitrust investigation gets underway in the UK: “We know that businesses, as well as consumers, may suffer real harm if anti-competitive practices by big tech go unchecked.” 😍 https://www.independent.co.uk/ ...
@geradinlaw Damien Geradin on x
And rightly so. Apple's treatment of app developers as second class citizens is no longer acceptable. I am delighted the claims made by our clients have received the attention of the CMA. https://techcrunch.com/...
@benedictevans Benedict Evans on x
UK Competition agency will investigate Apple's App Store rules. I wrote about this last summer: the principle of rules, a sandbox and a store are good, but Apple's rules are a mess and the in-app payment rules stopped making sense a decade ago. https://www.gov.uk/...
@cmagovuk @cmagovuk on x
Our investigation will consider Apple's market position, and whether it's imposing unfair and anti-competitive terms on developers. Find out more: https://ow.ly/...

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