Spotify Attacks Apple Business Practices At The EU

The App Wars, Cont'd.

SPOTIFY has filed a complaint with European regulators, accusing rival APPLE of using its App Store to squash companies that compete with its services, including APPLE MUSIC, the NY TIMES reports. The lawsuit echoes sentiments of Sen. ELIZABETH WARREN, who last week proposed breaking up the digital giants,, including the separation of the App Store from APPLE.

“SPOTIFY’s complaint is just the latest example of what can happen when these enormous companies abuse their power to undermine competition,” WARREN said in a statement. “We need a level playing field, and that starts by breaking up giant tech companies who both own a marketplace and operate in that same marketplace.”

APPLE’s control over the App Store -- the largest driver of that sort of its revenue -- has been an increasing source of tension. In a typical search for “music” on the App Store, the top result was an ad for APPLE MUSIC, followed by eight more APPLE apps. SPOTIFY was listed 11th.

“They continue to give themselves an unfair advantage at every turn,”  SPOTIFY CEO DANIEL EK said in a message posted on the company’s website, noting that APPLE was acting as both "player and referee to deliberately disadvantage other app developers ... 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.”

Companies are finding ways to reduce the fees they pay to APPLE, as SPOTIFY alleges APPLE punishes companies that don't use its payment system by restricting their ability to communicate with customers and preventing the release of app updates -- such as APPLE of blocking SPOTIFY's and other rivals' apps from services such as Siri, HomePod and APPLE Watch.

It's not guaranteed that SPOTIFY’s complaint will lead European regulators to formally investigate APPLE. The term of the EU's top antitrust official, MARGRETHE VESTAGER, ends this year, which would likely put off the decision to her successor.

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