Spotify and Other Companies Urge European Union to Crack Down on Apple's Fraudulent Practices

Spotify joins other companies such as Deezer urging the European Commission to take action against Apple (PHOTO: DOK. SPOTIFY)

JAKARTA - Spotify joins other companies such as Deezer in pressing the European Commission to take action against Apple, over unfair anti-competitive practices.

The request was submitted by letter and later also signed by Basecamp and five others, most of whom focused on the App Store. According to them, Apple places artificial barriers and overcharges, and changes its rules frequently.

These anti-competitive practices are certainly hampering their business, "(The European Union) must act quickly because every day that passes is a loss for innovation and the well-being of European consumers," the companies wrote in the letter.

Spotify has for years accused Apple of abusing its market position by using App Store rules to stifle competition.

Previously, Spotify had filed antitrust complaints against Apple in multiple countries, alleging the 30 percent fee Apple demanded that developers pay on its App Store had forced Spotify to raise its own prices.

"We are writing to you calling for swift and decisive action by the European Commission against anti-competitive and unfair practices by certain global digital gatekeepers, and Apple in particular," the letter read.

At the same time, enforcement of the EU's transformative Digital Market Act (DMA) is fast approaching. Likely, the DMA will appoint Apple as gatekeeper, which will require the company to loosen its grip on iOS and the App Store and give third parties like Spotify more flexibility.

Citing The Verge, Thursday, January 19, Apple reportedly plans to comply with the DMA by allowing third-party app stores and sideloading on iOS.

Spotify and other companies appear to be sending out this letter now in hopes of persuading a decision while the DMA is in the implementation phase.

If appointed as gatekeeper, Apple must comply with the DMA requirements by March 2024. However, the combined companies called for a swift decision, saying allegations of anti-competitive behavior would continue until Apple was forced to make a change.

For the record, Apple is limiting the ability of app makers to inform their customers about cheaper options elsewhere, which puts companies like Spotify in a difficult position, ceding huge amounts of revenue to the carriers of competing music streaming service Apple Music.