Apple hit with EU antitrust charge over App Store practices
A 3D-printed Apple logo is seen in front of a displayed European Union flag in this illustration taken September 2, 2016.
Applewascharged byEUantitrustregulators on Friday of abusing its dominance in the music streaming market via restrictive rules, the first case out of four that could lead to a hefty fine and changes in its lucrative business model.
iPhone makerApplefound itself in theEuropean Commission's crosshairs following a complaint by Swedish music streaming service Spotify two years ago, which said thatAppleunfairly restricts rivals to its own music streaming serviceAppleMusic on iPhones.
TheEUcompetition enforcer in its so-called statement of objections setting out thechargesaid the issue related toApple's restrictive rules for itsAppStorethat force developers to use its own in-apppayment system and prevent them from informing users of other purchasing options.
"By setting strict rules on theAppstorethat disadvantage competing music streaming services,Appledeprives users of cheaper music streaming choices and distorts competition,"European Competition Commissioner Margrethe Vestager said in a statement.
"This is done by charging high commission fees on each transaction in theAppstorefor rivals and by forbidding them from informing their customers of alternative subscription options," she said.
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This is the firstEUantitrustchargeagainstApple, a move that could lead to fines of as much as 10 per cent of its global turnover. Reuters was the first to report about the imminentEUantitrustchargein March.
Applewill have the opportunity to respond to theEUcharges before theEUcompetition enforcer makes a final ruling. It can offer concessions to stave off the fine without any finding of wrongdoing.
TheEUchargecomes a week beforeApple's face-off with Epic Games in a USantitrusttrial following a lawsuit by the "Fortnite" creator alleging thatApplehas abused its dominance in the market for mobileapps.
Epic has complained to the Commission on the same issues.
Last month, the UK Competition and Markets Authority opened an investigation intoAppleafter complaints the iPhone maker's terms and conditions forappdevelopers were unfair.