EU to slam Apple in Spotify’s complaint over App Store rules

EU regulators have reportedly sided against Apple in its long fight against Spotify over App Store policies. The complaint centered on “anti-steering” rules that allegedly prevented platforms like Spotify from adequately promoting alternative methods of payment. While Spotify was the key opposition, the decision impacts not just music-streaming, but anyone offering software that requires a monthly subscription.

The European Union’s ruling against Apple

According to Bloomberg, regulators are finalizing the ruling, with a formal decision expected for early next year. Along with the ruling, the EU will likely penalize Apple for the practice and ban it outright. It’s expected that Apple will get hit with a steep fine, with some experts suggesting it could be as much as ten percent of its annual global revenue, totaling nearly $40 billion.

However, the fine is likely to be lower as the EU tends to focus more on ending abusive practices rather than relying solely on fines as a deterrent. This means that Apple will be forced to comply with the rules when operating in Europe, ending anti-steering practices once and for all.

Apple’s anti-steering practices under scrutiny

This follows a probe that began four years ago after a complaint from Spotify alleging that Apple’s anti-steering practices were causing the music-streaming platform to raise prices to cover App Store-related costs. The formal charge sheet issued a “preliminary view” that Apple’s anti-steering obligations offer “unfair trading conditions.” The EU ruling could further loosen this mandate, allowing for more competition in the market.

Impact on the global market

The EU’s decision may have ripple effects globally, similar to ongoing antitrust cases in the US involving Apple and companies like Epic Games. While Apple has asked for an appeal in the US, countries like the EU can still influence company-wide changes. For example, the shift to USB-C ports was driven by regulatory bodies in various regions. Google also faced a setback in a US court this week, with a federal jury ruling in favor of Epic Games in an antitrust case against Google’s app distribution and billing services for Android devices.