Apple
and
Spotify
’s history of disputes and tensions regarding the former’s
App Store
policies is set to see a development. As per a report, in a case filed against the iPhone maker four years ago, it is expected to be hit by a ban on rules governing the store as well as a potential hefty fine from European Union regulators for allegedly blocking alternative subscription options for developers.
Citing people familiar with the investigation, a report by Bloomberg claims that EU authorities are in the process of finalising a decision that will prohibit Apple's practice of blocking music services from using their alternative subscription options for in-app transactions.
The decision, which is slated for early next year, may also result in a fine of as much as 10% of its annual sales.
What is the case
Nearly four years ago, Spotify complained that it was forced to ramp up the price of its monthly subscriptions to cover costs associated with
App Store rules
, according to which, Apple takes up to 30% commission on all transactions happening in the store.
Spotify claimed that Apple favoured its own music streaming app — Apple Music — over Spotify in the Apple App Store, and filed a complaint with the European Commission in 2019, alleging that Apple's App Store rules violated EU competition laws.
Additionally, Apple prohibits developers from offering an alternate payment option that circumvents its App Store policies.
Earlier this year, Spotify announced that it will no longer allow customers who previously subscribed to its streaming music service through the App Store to continue to pay using Apple's platform.
“We’re contacting you because when you joined Spotify Premium you used Apple’s billing service to subscribe. Unfortunately, we no longer accept that billing method as a form of payment,” the company told the subscribers.
The European Commission filed a formal charge sheet in February, saying “the conditions are unnecessary and mean customers may end up paying more.”
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