14 DAY TRIAL // The European Commission has announced that the way Apple offers Apple Music to customers and how it charges other rivals raises competition concerns, with the preliminary conclusion indicating the company violates the competition laws in the European Union.
The EC says Apple’s 30% cut is one particular problem and eventually affects customers, as most streaming providers end up increasing the prices and therefore passing the fee to end users.
At the same time, Apple has made it harder for rivals to inform users there are other ways to purchase content outside the App Store.
“While Apple allows users to use music subscriptions purchased elsewhere, its rules prevent developers from informing users about such purchasing possibilities, which are usually cheaper. The Commission is concerned that users of Apple devices pay significantly higher prices for their music subscription services or they are prevented from buying certain subscriptions directly in their apps,” the preliminary conclusion reads.
While the investigation continues, Apple could end up getting a hefty fine if the company is found as breaching the EU competition laws.
Just a preliminary conclusion for now
No ETA has been offered as to when the antitrust investigation could come to an end though.
“The Commission's preliminary view is that Apple's rules distort competition in the market for music streaming services by raising the costs of competing music streaming app developers. This in turn leads to higher prices for consumers for their in-app music subscriptions on iOS devices. In addition, Apple becomes the intermediary for all IAP transactions and takes over the billing relationship, as well as related communications for competitors,” the EC says.
Needless to say, Apple has remained completely tight-lipped on this decision, and don’t expect the company to release any comments until the European Commission announces its final decision in this antitrust investigation.