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Apple Guilty of Unfair Competition in Music Services

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The European Commission will formally accuse Apple of unfair competition in music streaming services, reports the British business newspaper Financial Times based on insiders.

 

Apple would not offer competing for music streaming services in the App Store the possibility to inform users that they can take out their subscription outside the App Store more cheaply. In the App Store, the services must pay a percentage of all sales to Apple.

The European Commission wants to accuse Apple of restricting other music streaming services, but not it is own. In doing so, it pushes rivals at a disadvantage. This is the first time that the European Commission has taken such a step against the tech company. This will tighten the relationships between Brussels and the tech giant. The EU is currently reforming European internet regulation.

The British competition watchdog CMA will also investigate whether Apple is abusing its dominant market position with the App Store. The App Store is the only way developers can offer their apps to users of iPhones and iPads. Developers must contribute up to 30 percent of their earnings to the US company.

Apple is being investigated in several countries for possible abuse of power at its app store. In the Netherlands, the Authority for Consumers & Markets (ACM) has almost completed its investigation.

Various companies, including music streaming service Spotify and Epic Games, the maker of the shooting game Fortnite, have also complained to regulators in recent years for the same reasons.

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