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Music Streaming Firms Call on European Commission to Reject Apple's App Store Proposal
Music streaming firms, including Spotify and Deezer, call on European Commission to reject Apple's proposal in App Store case. Digital Music Europe expresses concerns that Apple's proposed measures do not provide effective remedies. Apple was fined by the EU in March for hindering competition from music streaming rivals.
Leading audio streaming companies, including Spotify and Deezer, have joined forces under the banner of Digital Music Europe to urge the European Commission to reject Apple's proposal in a music streaming case. In a letter submitted on Tuesday, the group expressed concerns that Apple's proposed measures, aimed at complying with the regulator's order and the subsequent fine of 1.84 billion euros ($1.98 billion), do not offer sufficient and effective remedies.
The letter from Digital Music Europe argues that Apple's new program for music streaming services is discriminatory, as it forces competitors to participate in a regime controlled by Apple. The group believes that this approach hampers fair competition and limits consumer choice.
Apple was fined by the European Union in March for impeding competition from music streaming rivals through restrictions imposed on its App Store. In response, the tech giant announced measures to facilitate music streaming apps on its App Store within the European Economic Area, allowing them to inform users about alternative ways to purchase digital services, in line with EU regulations.
Under Apple's proposal, streaming services can include links to their websites to inform users about payment options outside of the App Store. However, the company would charge a 27% commission on transactions made through these links. Additionally, developers can also provide information about purchases available on their websites to users via email.
The European Commission, as well as the companies represented by Digital Music Europe, including Deezer, Qobuz, SoundCloud, Jamendo, and Soundcharts, have not yet responded to requests for comment. Spotify, on the other hand, declined to provide a statement.
It is worth noting that last month, Apple rejected Spotify's updated iOS app, which included in-app pricing information for users in the European Union. Spotify's decision not to comply with Apple's proposal demonstrates the ongoing tension between the two companies in the music streaming industry.
Music streaming firms, including Spotify and Deezer, call on European Commission to reject Apple's proposal in App Store case.
Digital Music Europe expresses concerns that Apple's proposed measures do not provide effective remedies.
Apple was fined by the EU in March for hindering competition from music streaming rivals.
Source: REUTERS