Tag: EC

The European Commission Confirms, Apple’s Anti-Competitive Behavior Is Illegal and Harms Consumers

Today’s decision marks an important moment in the fight for a more open internet for consumers. The European Commission (EC) has made its conclusion clear: Apple’s behaviour limiting communications to consumers is unlawful. This decision sends a powerful message—no company, not even a monopoly like Apple, can wield power abusively to control how other companies interact with their customers.

Apple’s rules muzzled Spotify and other music streaming services from sharing with our users directly in our app about various benefits—denying us the ability to communicate with them about how to upgrade and the price of subscriptions, promotions, discounts, or numerous other perks. Of course, Apple Music, a competitor to these apps, is not barred from the same behaviour. By requiring Apple to stop its illegal conduct in the EU, the EC is putting consumers first. It is a basic concept of free markets—customers should know what options they have, and customers, not Apple, should decide what to buy, and where, when and how. 

While we appreciate the EC addressing this important case, we also know that the details matter. Apple has routinely defied laws and court decisions in other markets. So we’re looking forward to the next steps that will hopefully clearly and conclusively address Apple’s long-standing unfair practices.

From the beginning, the foundational belief of the internet is that it should be a fair and open ecosystem. That belief has fueled growth, innovation and discovery around the world. Today the leading way people access the internet is via their mobile phones. So why should the same principles not apply? And while we are pleased that this case delivers some justice, it does not solve Apple’s bad behaviour towards developers beyond music streaming in other markets around the world. Our work will not be done until we succeed in securing a truly fair digital marketplace everywhere and our commitment to helping to make this a reality remains unwavering.

A Letter to the European Commission on Apple’s Lack of DMA Compliance

Ahead of the European Union’s DMA implementation deadline next week, Spotify and many EU companies sent the following letter to the European Commission today raising concerns about Apple’s lack of compliance.

 

Mrs. Margrethe Vestager
Executive Vice-President – A Europe Fit for the Digital Age
European Commission

Mr. Thierry Breton
Commissioner for Internal Market European Commission

Dear Executive Vice-President, Dear Commissioner,

We are 34 companies and associations operating across a wide range of digital sectors, including aviation, publishing/press, gaming, commercial radios, audio streaming, applications software, communications, marketing, payment, fintech, crypto and marketplaces. Together, we represent tens of thousands of businesses of all sizes and we serve hundreds of millions of customers across Europe.

We are very concerned that Apple’s proposed scheme for compliance with the Digital Markets Act (DMA), as communicated on 25 January 2024, will not meet the law’s requirements therefore inhibiting our ability to deliver the benefits of the DMA to consumers as soon as possible.

Apple’s new terms not only disregard both the spirit and letter of the law, but if left unchanged, make a mockery of the DMA and the considerable efforts by the European Commission and EU institutions to make digital markets competitive.

There are a myriad of elements in Apple’s announcement that do not comply with the DMA. We take this opportunity to highlight some of the most obvious and egregious:

  • Apple is offering app developers an unworkable choice between staying on its current terms – which are manifestly not compliant with the DMA – or opting into new terms, implying that only app developers opting into the new terms will benefit from the DMA. This is a false choice and merely adds unnecessary complexity and confusion. Neither option is DMA compliant and both options would simply consolidate Apple’s stronghold over digital markets.
  • The new fee structure in the proposed new terms seems designed to maintain and even amplify Apple’s exploitation of its dominance over app developers. With a hefty transaction fee and a Core Technology Fee (CTF), few app developers will agree to these unjust terms. These fees will deter app developers from providing seamless in-app experiences for consumers, and will hamper fair competition with potential alternative payment providers.
  • Apple claims “the changes include new controls and disclosures, and expanded protections to reduce privacy and security risks the DMA creates.” This is masquerading unfounded privacy and security concerns to the detriment of user choice. Apple’s approach – such as the introduction of “scare screens” – will merely mislead and degrade the user experience, depriving them of real choice and the benefits of the DMA.
  • To succeed, the DMA must create opportunities for real competition, including alternative app stores and sideloading. New app stores are critical to driving competition and choice both for app developers and consumers. Sideloading will give app developers a real choice between the Apple App Store or their own distribution channel and technology. Apple’s new terms do not allow for sideloading and make the installation and use of new app stores difficult, risky and financially unattractive for developers. Rather than creating healthy competition and new choices, Apple’s new terms will erect new barriers and reinforce Apple’s stronghold over the iPhone ecosystem.

The European Commission’s response to Apple’s proposal will serve as a litmus test of the DMA and whether it can deliver for Europe’s citizens and economy.

In the absence of materially different proposals from Apple, we urge the European Commission to take swift, timely and decisive action against Apple, to protect developers and benefit consumers and do so as soon as the DMA obligations apply. This is the only way to guarantee the DMA remains both credible and delivers competitive digital markets.

Yours sincerely,
The Signatories

EU Companies
Adevinta
Beonex
Blockchain.com
Cafeyn
Deezer
Epic Games
iconomy
Mustang
Paddle
Parula
Proton
Schibsted
37signals
SkyDemon
Spotify
Threema
Uptodown
Vipps MobilePay

EU Associations
Alliance Digitale
Association Européenne des Radios (AER)
Classifieds Marketplaces Europe (CME)
Digital Content Next (DCN)
Digital Music Europe (DME)
European DIGITAL SME Alliance
European Games Developer Federation (EGDF)
European Fintech Association (EFA)
European Magazine Media Association (EMMA)
European Newspaper Publishers’ Association (ENPA)
European Publishers Council (EPC)
France Digitale
Internet Economy Foundation (IEF)
News Media Europe (NME)
Sveriges Tidskrifter
Tidningsutgivarna

European Commission: Apple’s Abuses Harm Consumers

The European Commission has once again made it abundantly clear that consumers are the ultimate victims of Apple’s abusive and anticompetitive behavior—and putting a stop to it is a top priority.

Apple’s anti-steering rules, which prohibit Spotify and other developers from telling consumers about deals or promotions through their own apps, mean that users are deprived of opportunities to save money and enjoy a higher quality service. That directly harms consumers.

With each passing day, Apple continues to choke competition and smother innovation. The European Commission today is sending a clear message that Apple must play fair and let competition work. Momentum is on the side of consumers but they deserve final resolution—and soon.

Read Spotify’s Joint Letter with European Companies Calling for Meaningful Regulatory Action Against Apple

Apple’s anti-competitive behavior harms hard-working consumers and developers—and the longer we wait, the harder it will become to stop them. Today, Spotify and seven other companies and organizations in sectors including publishing, audio streaming, dating, communications, and marketplaces sent a joint letter to call for meaningful regulatory action against Apple’s long-standing anti-competitive practices in Europe. 

Almost four years ago, Spotify filed a formal antitrust complaint with the European Commission because Apple’s anti-competitive behavior was stifling innovation and harming developers and consumers across Europe and around the world. Since then, little has changed. Apple has been enabled by the lack of decisive action by regulators, who continue to move hesitantly, even in the face of a groundswell of support. 

The clock is ticking. It’s time for regulators to address the ever-growing chorus of complaints against Apple, a critical step in stopping Apple’s continued abuses of its powerful platform. 

Read the letter here and learn more at TimeToPlayFair.com.