EU regulators accuse Apple of violating the Antitrust Laws | Latest World English News | JPNN us

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and european union regulators have accused apple of violating the bloc’s anti-trust laws and distorting competition in the music streaming market siding with rival spotify and eu regulators allege that apple distorts competition for music streaming through rules for its app store this is a case that could lead to a hefty fine and changes in the iphone maker’s lucrative business practices apple found itself in the european commission’s crosshairs after swedenbay’s spotify complained two years ago that the us tech giant unfairly restricted rival apps to its own music streaming service apple music on iphones today today the commission has uh sent a statement of objection to apple our preliminary conclusion is that apple abused its dominant position for the distribution of music streaming apps through its app store and distorted competition in the music streaming markets the main concern centers on apple’s practice of forcing rival app developers selling digital content to use in its in-house payment system which charges a 30 percent commission on all subscriptions the charge is not applicable for apple’s own music app thus making it more attractive to customers due to apple’s rules on the app store music streaming providers essentially have two choices either they pay a fee on 30 of each subscription bought in the app in the app store and raises their prices without being able to inform their users of cheaper offers or they use they lose the access to apple device users for paid subscriptions another concern is that apple prevents developers like spotify from telling users about cheaper ways to pay for subscriptions under eu competition law companies can be fined up to 10 percent of their annual revenue for breaches apple music is not subject to any of these rules and it’s offered at a price at typically 9.99 euros we are concerned that apple’s rules negatively impacts its rivals by raising its costs reducing their profit margins as well as their attractiveness on the apple platform meanwhile apple has rejected all accusations by eu regulators an apple spokesperson told afp that spotify wants and i’m quoting at this point all the benefits of the app store but don’t think they should have to pay anything for it apple also claims the case was the opposite of fair competition in a similar case russia has imposed a 12.1 million dollar fine on apple for abusing its dominant position by giving preference to its own applications this after complaint was registered by cyber security company kaspersky lab.

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