Meanwhile, last year the EU passed its Digital Markets Act, which seeks to more widely address competition issues caused by major digital platforms exploiting their market dominance. That regulator began an investigation and, in May 2021, published a Statement Of Objections expressing concerns about Apple’s in-app payment rules. With that in mind, Spotify made a formal complaint to the EU’s competition regulator. But Spotify et al would like a more significant intervention, in particular a forced rule change to allow them to take in-app payments on iOS devices via their own transaction systems. Those efforts have resulted in some regulator interventions in some countries, and some relaxation of Apple’s rules. Spotify and Deezer, alongside many other app-makers, have been calling for some time for regulators and the courts to force a change to Apple’s rules, arguing that the enforcement of those rules by the tech giant constitutes anti-competitive conduct. But that makes it harder for Spotify to upsell premium subscriptions to its free tier users, which is a key part of its business model. Instead most music streaming services just don’t allow in-app payments at all. But that then makes their services look more expensive than Apple Music. Given a streaming service’s profit margin is around 30%, that is only viable if they pass the commission onto the consumer. Such payments currently have to be taken via Apple’s own commission-charging transactions platform, and the rules have also traditionally banned app-makers from sign-posting alternative payment options available elsewhere online.įor services like Spotify and Deezer, it means if they sell subscriptions within their apps they have to pay a 15-30% commission to Apple. This relates, of course, to Apple’s App Store rules, and in particular the rules governing in-app payments on iOS devices. Spotify and Deezer were among the signatories of a letter sent to the European Commission earlier this week urging the European Union to finally and urgently end the “abusive behaviours” of big bad Apple. Business News Digital Legal Spotify and Deezer call for urgent action from the European Union over Apple’s App Store rules By Chris Cooke | Published on Friday 20 January 2023
0 Comments
Leave a Reply. |