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EU regulators assess Apple's plan for complying with music streaming order

Published 04/08/2024, 06:51 AM
Updated 04/08/2024, 06:35 PM
© Reuters. FILE PHOTO: European Commissioner for Europe fit for the Digital Age Margrethe Vestager speaks during an online news conference on Apple anti trust case at the EU headquarters in Brussels, Belgium April 30, 2021. Francisco Seco/Pool via REUTERS/File Photo

By Foo Yun Chee

BRUSSELS (Reuters) -EU antitrust regulators are checking if an Apple (NASDAQ:AAPL) proposal would comply with their order to let Spotify (NYSE:SPOT) and other music streaming services inform users of payment options outside its App Store, the European Commission said on Monday.

The iPhone maker risks antitrust charges and fresh fines if its proposal announced last Friday fails to satisfy the EU competition enforcer, which issued its order together with a 1.84 billion euro ($2 billion) fine last month

Under Apple's proposal, the Swedish music streaming service Spotify and others can include a link to their websites to inform users of other ways to purchase digital goods or services, away from Apple's App Store.

They can also invite users to provide their email address to be sent a link to the platform's website to buy digital music content or services. Links which result in digital purchases, however, carry a 27% fee to Apple, including for subsequent auto-renewing subscriptions.

"We are currently assessing whether Apple has fully complied with the decision," a Commission spokesperson said.

"In general, if the Commission suspects that there is non-compliance with an adopted decision, it will send the undertaking concerned a Statement of Objections," the spokesperson added.

Apple's plan complies with the Commission decision, an Apple representative said.

Spotify bemoaned the fact that it was still waiting for Apple to comply with the EU order, five weeks on.

Separately, the Commission is also investigating Apple's rules for its App Store and measures it announced recently to comply with new EU legislation known as the Digital Markets Act on concerns that these and various charges may hinder developers from freely communicating and promoting their offers.

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($1 = 0.9234 euros)

Latest comments

why not just cut the EU off completely? All they do is make up fines to steal money from US firms
Hoch Gepusht? und jetz
This is why Brexit happened… Nonsense thinking, nonsense suits, nonsense regulators and fuss talking… They are probably buying nasdaq stocks while talking…
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