As Calls to Break Up Big Tech Grow, Spotify Files Antitrust Complaint Against Apple
Less than a week after Sen. Elizabeth Warren's call to break up big tech, Spotify has filed an antitrust complaint against Apple with the European Commission—the same regulators that fined Google $5 billion over antitrust concerns last year.
March 13, 2019 at 01:52 PM
3 minute read
Music streaming platform Spotify filed a formal antitrust complaint against competitor Apple Inc., claiming the Cupertino, California-based company unfairly taxes services on its app store and blocks updates to consumers.
The complaint was filed Monday with the European Commission, as European Union regulators are scrutinizing large tech companies over antitrust concerns. Last July, the commission hit Google with a massive, record-setting $5 billion fine over alleged antitrust violations. Facebook faced restrictions from German antitrust authorities in February.
Antitrust concerns more recently came to the United States, with presidential candidate Sen. Elizabeth Warren, D-Massachusetts, calling for the breakup of big tech companies, including Apple, on March 8.
Daniel Ek, the founder and chief executive officer of Stockholm-based Spotify, said in a blog post Wednesday that the complaint was filed because Apple uses its ownership of the iOS platform and the App Store and its access to more than a billion users “to give themselves an unfair advantage at every turn.”
He cited Apple's 30 percent tax on digital service purchases made through the company's payment system as one way it steers consumers toward its own platforms, such as streaming service Apple Music. The tax applies to Spotify user upgrades from free to premium.
“If we pay this tax, it would force us to artificially inflate the price of our Premium membership well above the price of Apple Music. And to keep our price competitive for our customers, that isn't something we can do,” Ek wrote. A Spotify representative declined request for further comment, and Apple did not immediately respond.
Opting not to use Apple's payment system to avoid the 30 percent tax would limit Spotify's market. Ek said other apps in Apple's platform, including Uber and Deliveroo, aren't subject to the tax.
The CEO also claimed Apple blocked Spotify app upgrades, limited its communication to customers on Apple services and locked competitors out of Apple-owned Siri, HomePod and Apple Watch.
“Apps should be able to compete fairly on the merits, and not based on who owns the App Store. We should all be subject to the same fair set of rules and restrictions—including Apple Music,” Ek said.
He implored the European Commission to prevent app stores from controlling communications between services and users or preventing marketing from apps not controlled by Apple, and to push for a market that provides consumers a “real choice of payment systems” to prevent unfair taxes.
Read More:
Massive $5B Fine Against Google Highlights Long-Term Shift in EU, US Antitrust Enforcement
Tech M&A Counsel Can Take Precautions as Regulators Propose Reversing Approved Deals
Google to Appeal $5 Billion Antitrust Fine, Voices Fear for Android Open Source System
Facebook Will Appeal German Data Processing Restrictions, Associate General Counsel Says
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