Report: Apple to Be Hit By EU Antitrust Order Over App Store Rules for Music Services

The European Commission is reportedly getting ready to crack down on Apple’s restrictive App Store rules for competing music streaming services. Four years after Spotify complained to the EU about Apple’s anticompetitive practices on the App Store, Bloomberg reports that the EU Commission’s upcoming decision could come with a fine that represents as much as 10% of Apple’s annual sales.

“EU regulators are putting the finishing touches to a decision that would prohibit Apple’s practice of blocking music services from pushing their users away from the App Store to alternative subscription options,” people familiar with the matter told Bloomberg. “The decision is slated for early next year, they added.”

In its complaint to the EU Commission, Spotify argued that Apple’s 30% cut on in-app subscriptions makes it impossible to compete with Apple Music on a fair ground. Moreover, Apple also doesn’t authorize Spotify and other music streaming services to link to outside payment opportunities where Apple wouldn’t be able to collect its 30% cut.

Earlier this year, Spotify, Deezer, and other companies sent a letter to the European Commission to urge the regulator to take action against Apple’s anticompetitive practices. While Apple may be hit by an EU antitrust order very soon, the EU’s Digital Market Act, which will be fully applicable next year, will also force the company to make some changes to its platforms and services, including the App Store.

Under the Digital Markets Act, Apple will be forced to allow iOS users to download apps from other sources than the App Store, where Apple won’t be able to take its cut on in-app purchases. Apple will also need to make some changes to its App Store and stop giving its own services preferential treatment.