The European Union is investigating Apple's response to Spotify's complaint to determine whether changes were made to disable steering. by the Cupertino company are sufficient to comply.
Update: GamesFray suggested that this amounted to a fourth DMA non-compliance investigation against Apple, but I now understand that they misinterpreted the remarks made. company dealing with regulatory risks …
What you need to know about Apple and the DMA
Europe's Digital Markets Act (DMA) requires tech giants to ensure they do not use a dominant position on market to give its own products and services an unfair advantage over competing ones.
The first step in this process was to decide which companies qualified as “gatekeepers” under the law, that is, companies whose power was sufficient to effectively harm competitors. Apple found itself the gatekeeper to the App Store, as the developer had no other way to sell iPhone apps. This meant that the company was required to make policy changes to comply with the DMA.
Apple announced that it would allow third-party app stores, but with a ton of asterisks. These include charging underlying technology fees for any app sold outside of its own App Store, potentially putting small developers out of business.
We said at the time that these proposals would not satisfy the EU, and that soon confirmed. The European Commission initially said it was unhappy with two of Apple's responses to the new law, and later added a third.
Apple is currently under three DMA compliance investigations
Apple is currently under three DMA compliance investigations:
- App Store Anti-Management Policy (see next section)
- Alternative app store fee structure, including the Core Technology Fee (CTF)
- Web browser selection screen during iPhone setup
These investigations It could take up to a year before the EU determines whether Apple has complied with the law.
So What's going on now?
Spotify has long complained that Apple's App Store policies have created an uneven playing field between its app and Apple Music.
In particular, Apple Music allows registration in the application to receive a paid subscription, but Apple does not do this’ I won't have to pay any of that to Apple. Spotify, on the other hand, would have to pay Apple 30%, meaning it couldn't compete on a level playing field.
Additionally, Apple didn't allow Spotify to avoid this by directing users to its website instead this subscribe there. It couldn't link to a website or even specifically tell users where they needed to go to sign up. (That's why it's called an anti-steering policy.)
Spotify complained about this back in 2019, and just last month Apple was found guilty of anti-competitive behavior under the old antitrust law. The company was fined 1.8 billion euros (approximately $2 billion). Apple was not satisfied with this and filed an appeal. However, the company subsequently relaxed its anti-regulatory policies to comply with the ruling.
Spotify remains unhappy with Apple's response and the EU is investigating.
Spotify says Apple can now be fined
Lewis Crofts, editor-in-chief of regulatory risk at MLEX, noted Spotify's assertion that that Apple's changes are not enough to comply with DMA.
.@Apple has updated its terms for music apps to allow its customers to make purchases outside of the App Store. This is part of the EU's #antitrust case in March. @Spotify doesn't think that's enough. wants @vestager to file a non-compliance case. https://t.co/pzLvEExVUp
— Lewis Crofts (@lewis_crofts) April 7, 2024
He subsequently confirmed that the EU was investigating:
Update: @EU_Commission says: “We are currently assessing whether Apple has fully complied with this decision.”
— Lewis Crofts (@lewis_crofts) April 7, 2024
GamesFray interpreted this to mean that a fourth DMA investigation had been launched, but I now understand that it misinterpreted Croft's remarks.
Spotify claims Apple could be fined right now
Spotify suggests that Apple does not comply with the DMA and could be fined as of Saturday – the day after Apple announced changes to its policies.
However, app developer and intellectual property activist Florian Müller suggested that Spotify has it here shaky ground. That's because the streaming music giant deliberately filed its complaint in very narrow terms, arguing that the more specific the allegations against Apple are, the more likely it is that the iPhone maker will be found guilty.
Mueller expressed the view was that this precluded a decision on Apple's royalties, and Crofts agreed.
When I saw the new rules, I even wrote that Apple must have rejected Spotify's recent application.
I don't always agree with Apple, but I've been watching them long enough. and I'm sure the EU regulation doesn't stop them from bringing charges. Eventually, the business dwindled.
— Florian Müller (@Florian4Gamers) April 7, 2024
So, the situation is that the existing investigation into the activities of the CTF continues.
One thing is for sure: these questions are important. it will take years to resolve. The EU has said it could take up to a year to reach a decision, and if Apple is found guilty of any or all of them, the company will likely appeal, setting us up for literally years of legal battles.
Photo: Apple
