Apple is in the spotlight not only for its upcoming iPhones but also for its legal disputes with the European Union (EU). Recently, Apple was hit with a €1.84 billion fine under the EU’s Digital Markets Act (DMA). This fine stemmed from allegations of anti-competitive practices on iOS. So, what’s behind this fine, and what did Spotify gain? Here are the details…
Spotify Gains from €1.84 Billion Fine on Apple
The €1.84 billion fine imposed on Apple by the EU is based on claims that Apple created unfair competition among apps on the iOS platform. Spotify has long complained about Apple’s App Store policies, particularly the restrictions and commission rates imposed on third-party apps competing with Apple’s own service, Apple Music. These practices were alleged to have hindered Spotify’s growth.
The EU’s fine indicates that Apple must stop such anti-competitive practices, but this is just the beginning. Apple will need to make new adjustments for apps like Spotify, or face further penalties.
A significant development following the EU’s decision is that Apple has made concessions to Spotify. Most notably, Spotify is now allowed to display price information to EU users within its iOS app. This is a crucial step for Spotify, as being able to show prices directly can aid in its subscription growth strategies.
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However, these concessions are not without their limitations. Apple still does not permit Spotify to provide direct links to its website within the app. This means Spotify users cannot click through directly to “spotify.com” from within the app; instead, Spotify can only provide text-based instructions. Thus, limitations remain.
In response to these restrictions, Spotify plans to launch a large-scale promotional campaign in the EU to encourage users to upgrade their subscriptions directly through its website. The fight is not over yet, and Apple’s future actions will be closely monitored by both the EU and Spotify.
What do you think about these developments? Did Apple deserve this fine? Share your thoughts in the comments below.
