Eu commission: apple distorts the competition at streaming subscriptions

Eu commission: apple distorts the competition at streaming subscriptions

The EU Commission accuses Apple unfair competition in his App Store. Apple disadvantaged other providers of Musikstreaming Apps, explained competition commissarin Margrethe Vestager on Friday based on premier findings of an investigation. The Commission believes, among other things, that the selling of subscriptions in the apps over Apple’s payment platform must be handled and thus competitors are hindered.

The Commission’s investigation was totled in Marz 2019 by a complaint of the Music Treaming Market Spotify, which competes with Apple Music. In June last year, the Commission then initiated an antitrust examination. In this procedure, she has officially authorized Apple her sight. Thus, the competitive helps go the next step of an antitrust examination. Apple now first has the opportunity to reply.

Gatekeeper and competitors

The competition herd showed the worried that Apple users had to pay for Musikstreaming subscriptions or could not buy some subscriptions in their apps. They also came to their premier findings that Apple has a dominant market position in the distribution of music streaming applications in the App Store. The Group is at the same time "Gatekeeper" and competitor with his own service Apple Music, emphasized Vestor.

Apple participates in the app store principle a delivery of 30 percent to revenue with digital articles or subscriptions. For a long-running subscription, the Commission decreases to 15 percent – and recently also for developers who take less than one million dollars per year.

High prices for consumers

The Commission concluded that most streaming providers passed the emotion to their customers with high prices. Spotify for example, a time offered its subscriptions in the iPhone app for 12.99 instead of 9.99 euros per month. Already a few years ago, however, the service went over to sell the subscription via a website instead of iPhone customers to escape the emotion. The video streaming service Netflix also goes this path.

In this model, the second competition violation comes from the point of view of the Commission: The providers were not allowed directly to install a link to the website directly in the app, on which you can buy the subscriptions to Apple over. Apple counters, for example, no electronics market advertising of a competitor was allowed in addition to its own price tags. The iPhone Group also points out that Spotify has gained more than 100 million subscription customers since the exit from In-App-Buy 2016. In addition, Spotify the reduction of the emotion from 30 to 15 percent not to customers.

Like this post? Please share to your friends:
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: