The E.U. to Launch Investigation Into Apple After Spotify’s Complaint

The EU probably won't take Spotify's complaint lightly

A report in the Financial Times suggests that the European Commission, responsible for scrutinizing business competition in the region, will launch an antitrust investigation into Apple's behavior, having already conducted meetings with consumers and businesses. Rivals such as Spotify have long complained about what they call the "Apple Tax", a fee of 30% that is assessed to apps in the App Store. Visit MarketWatch.com for more information on this news. Spotify filed a complaint with the EC in March, saying Apple "tilted the playing field" because it owns iOS, the App Store, and Apple Music.

"As an alternative, if we choose not to use Apple's payment system, forgoing the charge, Apple then applies a series of technical and experience-limiting restrictions on Spotify", Ek explained, adding that Apple limits its communication options with customers, while also locking access to tech like Siri and the HomePod.

"Apple requires that Spotify and other digital services pay a 30 per cent tax on purchases made through Apple's payment system, including upgrading from our free to our premium service", Spotify CEO Daniel Ek said.

Naturally, a ruling in favour of Spotify will have a huge impact on Apple and its earnings. Now a formal investigation into Apple's App Store rules should begin before the end of this month.

More news: Unai Emery insists Europa League win is within Arsenal's reach

Apple responded to Spotify's complaint by saying that it has "approved and distributed almost 200 app updates on Spotify's behalf, resulting in over 300 million downloaded copies of the Spotify app".

This as the penalty for infringing upon trust laws in the region could result in a fine up to 10 percent of Apple's global revenue. And the music streaming company went to the Europian Commission (EC) to resolve the matter.

Apple has responded to Spotify's claims, stating that the latter wants to make use of all the benefits provided by the former's App Store, without contributing to its upkeep. Google's European Union antitrust bill now stands at €8.2 billion ($9.3 billion), for example.

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