The EU could announce new sanctions against Apple: the reasons

2023-12-14 10:30:26

While it will have to make some changes to its products to comply with the Digital Markets Act, Apple might also be sanctioned by the European Commission, following a several-year investigation. In 2020, following a complaint filed by Spotify, Brussels opened proceedings once morest the Cupertino company. As a reminder, Spotify had complained regarding commissions charged by Apple on user purchases (while Apple also offers a competing streaming service) and other restrictions imposed by the App Store.

A statement of objections was sent to Apple in 2021. Then, in February, clarified its position: the investigation focused on “contractual restrictions that Apple has imposed on application developers” and which can prevent companies like Spotify to inform their users regarding the possibility of having a cheaper subscription outside of their iOS applications (on which you have to pay a commission to Apple).

For the moment, we are still awaiting the decision of the European Commission. But according to an article from Bloomberg, it is already in the process of finalizing this decision. And the announcement would be scheduled for early 2024. In any case, as the American agency points out, Apple risks a fine of up to 10% of its turnover. The Commission can also force the Cupertino company to put an end to practices deemed illegal.

Apple has already made changes

During a private hearing in June, Apple defended itself by explaining to the Commission that it had already responded to possible competition problems. As a reminder, this now authorizes apps like Spotify to redirect users to subscription payments on the web, to avoid App Store commissions. And as Bloomberg explains, the developers of these apps can also inform their users, via e-mail, for example, of this opportunity.

However, Spotify would still not be satisfied. He would have explained that there are still restrictions and that these changes are only there “for show”. Otherwise, it should be remembered that in addition to this investigation into App Store restrictions, the European Commission also has an ongoing investigation into Apple Pay. Indeed, Brussels is investigating possible restrictions on the iPhone which might harm competition in the mobile payments sector. This investigation looks at the NFC module of the iPhone. But to avoid sanctions, Apple has already proposed to the Commission to authorize Apple Pay’s competitors to have access to this iPhone model, for mobile payments.

  • Following a complaint filed by Spotify, the European Commission opened proceedings once morest Apple in 2020
  • Today, the Brussels investigation focuses on the restrictions imposed by Apple on developers of music streaming apps
  • According to Bloomberg, a decision would finally be made in early 2024
  • Apple has already modified the App Store rules to address possible competition problems, but these modifications would not be satisfactory for Spotify
  • Another European Commission investigation targets Apple Pay and the iPhone’s NFC module

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