Apple Antitrust Case Gets Support of European Consumer Group

The music industry is fighting for its rights for a very long time, and after the digital music apps came into the picture, this battle changes with it. Fair competition is a trade policy that is sometimes getting down when the monopoly of certain companies begins.

The European Consumer Organization (BEUC) lobby group on Wednesday backed the EU’s no-confidence case against Apple, alleging it distorts competition in the music streaming market.

The European Commission filed its first no-confidence charge against Apple in April following an initial complaint by Spotify, the rival of the iPhone manufacturer.

What made Spotify’s Market

Spotify is the biggest music streaming platform. Spotify is a streaming music service that developed in 2006 in Sweden, launched in 2008. Spotify Ltd. presently works as the parent firm in London, while Spotify AB conducts research and development in Stockholm.

Spotify was valued at more than $5 billion in 2015. $1/2 billion has been invested in the company’s expansion through seven rounds of investment from 17 investors. It is currently rumored that it will receive an extra $500 million in capital in order to prepare for an IPO.

Existing online music providers such as iTunes and Napster compete with Spotify, and the fair competition scenario came here in the picture.

BEUC said it had been allowed to join as a willing third party in the case of the antitrust regulator, which could result in a hefty penalty of up to 10 percent of Apple’s global turnover and force a change in its business practices.

Apple rejects EU allegations over using the app store to crush Spotify.

"We look forward to working with the Commission to ensure that Consumers in Europe have access to the whole range of music streaming services, without their choice being wrongly restricted or prices artificially raised," BEUC Director General Monic Goins said in a statement."

Apple’s claim

Apple has rejected EU allegations saying its app store has enabled Spotify to become the world’s largest music subscription service. 12 weeks have been given to respond to the allegations.

Spotify wants "all the benefits of the app store but doesn’t think they should pay anything," An Apple spokesman said the EU case was "contrary to fair competition."

The EU competition promoter said in his so-called statement of allegation-setting objections that issue related to restrictive rules for Apple’s own app store that forces developers to use their in-app payment system and prevents them from informing users of other purchase options.

"This is done by imposing high commission charges on each transaction in the App Store for rivals and by refusing to inform their customers about alternative subscription options," she said.

"By establishing stringent rules on app stores, which harm competitive music streaming services, Apple deprives users of cheap music streaming options and distorts competition," European Competition Commissioner Margrethe Westager said in a statement."

Fair competition and policies are always a question that is unanswered on the companies end. These cases are an example, how sometimes the consumer has limited options. The open market concept says that the consumer will decide and control what they want to buy from the market, but with the strict guidelines and fewer options, Apple users have restricted access to many apps, which is a reason why users switch from iOS to android. While Apple is claiming that he helped Spotify in becoming the number 1 music streaming app. Let’s see that consumer affairs will remain intact after the intervention of BEUC.

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