The European Commission in a preliminary investigation has found that Apple is in breach of EU competition law in relation to the company’s App Store practices. Following an initial complaint from Spotify, the Commission has concluded that Apple has broken EU competition rules with its App Store policies.

Apple has "distorted competition in the music streaming market as it abused its dominant position" in the distribution of music streaming apps through its App Store, the European Commission said on Friday.

In its preliminary conclusion, the EU found out that “Apple is in breach of EU competition law”, Margrethe Vestager, the head of competition policy in EU, said in a tweet. Apple charges high commission fees on rivals in the App store and forbids them to inform of alternative subscription options thus letting the consumers lose, the tweet mentioned.

The European Commission, the EU’s executive arm, had begun an antitrust investigation into the App Store last year after the music streaming platform Spotify registered a complaint in 2019 about Apple’s license agreements.

Apple requires that Spotify and other digital services pay a 30 percent tax on sales made through Apple's payment system, including upgrading from a free to premium subscription, according to the agreements.

The Commission said it has informed Apple of its preliminary view that the company's “rules distort competition in the market for music streaming services by raising the costs of competing music streaming app developers”, in its “statement of objections” sent to Apple.

A statement of objections is part of the formal process in an antitrust investigation but it does not prejudge the outcome of an investigation, according to the EU antitrust Commission’s statement.

Apple’s reply to the charges

Apple said the EU’s case was the “opposite of fair competition”, said a CNBC report.

Lauding its role in helping Spotify become the largest music subscription service in the world, Apple said, “once again, they want all the benefits of the App Store but don’t think they should have to pay anything for that," CNBC reported.

Welcoming the EU’s preliminary view, Spotify’s chief legal officer Horacio Gutierrez termed the European Commission’s Statement of Objections as “a critical step toward holding Apple accountable” for breaking the competition rule, the report added.

(Edited by : Jomy)