In a recent interview with CNBC, EU’s antitrust chief Margrethe Vestager expressed her concerns over Apple‘s alleged anti-competitive behavior towards Spotify, the leading music streaming service in the world. Vestager’s office is currently investigating Spotify‘s complaint that it is being prevented from reaching its audience, despite the fact that Apple Music is ranked fourth or fifth in the industry.
At the center of this controversy is Spotify’s latest iOS anti-steering update, which includes a link to its website and pricing details for EU users. This feature was previously not allowed by Apple, but it is now permitted under EU regulations. However, Spotify has claimed that Apple is blocking the update, which has led to Vestager’s investigation.
Vestager emphasized that this issue is a top priority for her office, as it affects consumers’ choices. She explained that users should have the option to pay for Spotify’s services directly, without incurring Apple’s 30% service fee. However, it is worth noting that Spotify does not pay this fee for all its customers and the 30% applies only to the first year of a maintained subscription, with a reduced rate of 15% for subscribers held for over a year.
Despite this, Vestager has repeated the 30% fee in her statements, which has been a point of contention for Spotify in its blog posts and court filings. Vestager has stated that her office is investigating this matter as a high priority and is determined to ensure that Apple complies with the EU regulations.
Vestager is also responsible for overseeing the EU’s efforts to regulate Big Tech firms, including Apple, Google, Meta, and others. She has expressed her concerns that these companies may not be fulfilling their obligations and that they could be closing the market, making it difficult for other businesses to compete.
When asked about Apple’s alleged monopoly in the smartphone market, Vestager has provided a nuanced response, stating that there are different markets within the smartphone industry. She has emphasized that a high-end, expensive phone is not in the same market as an affordable, cheaper phone and that comparisons between them should be made with caution.
Vestager has also expressed her concerns about the use of AI, particularly in an election year. She has highlighted the need for AI providers to be prudent and ensure that artificial content can be recognized and that deep fakes can be dealt with, to maintain the integrity of the election.
In addition to these concerns, the EU launched a series of mass Digital Markets Act violation probes against Apple, Google, and Meta in March 2024, further highlighting the EU’s efforts to regulate Big Tech firms.
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