Apple and Spotify: A litmus test of EU antitrust rules to protect consumers and economy from the consequences of the EU’s response to Apple’s App Store policies

Apple’s app store rules restrict music streaming companies and other apps from informing their users on Apple devices about how to upgrade or sign up for subscription offers outside of the app. In-app subscription options can only be signed up for via Apple’s payments system, where prices are likely to be higher. Some app makers, including Spotify, that do not offer in-app purchases because they don’t want to pay this commission. Some consumers may have paid more because they thought they could pay less if they subscribed outside of the app. This is not legal under EU antitrust rules. Apple has pledged to appeal after saying that the EU did not provide credible evidence of consumer harm.

The Commission said it took into account the “duration and gravity of the infringement” when setting the fine, as well as Apple’s total turnover and market capitalization, while also factoring in “incorrect information” submitted by Apple during the administrative procedure.

Alongside its investigation into Apple’s App Store policies, the European Commission has also been looking at Apple’s policy of restricting the iPhone’s tap-top-pay NFC (near-field communication) to its own wallet and payment services. An investigation has led to Apple offering to let third-party payment providers use the phone’s Near Field Communications (NFC) feature.

On March 1st, Spotify also published an open letter backed by 33 other companies and associations that spotlighted concerns with Apple’s DMA compliance. In the letter, Spotify claimed that the EU’s response to the proposal will “serve as a litmus test of the DMA and whether it can deliver for Europe’s citizens and economy.”

The two companies have been at war as Apple accused the service of exploiting its dominance to stifle innovation, while the streaming service accused the tech giant of exploiting its dominance to stifle innovation. In their long-running conflict, each has made incursions into the other’s territory. Apple Music did not have to pay the same app store fees as other streaming services, which allowed it to reduce its prices. In a challenge to Apple, the streaming service started to spend more on high profile shows.