According to a Bloomberg report citing “people familiar with the investigation,” EU regulators are set to issue a ruling banning Apple’s anti-steering rules for music services.
Currently, Apple requires digital subscription services on iPhone or iPad to offer subscriptions only through Apple’s own payment system, for which the company takes 15 to 30 percent of each purchase. Services like Spotify may let you subscribe on the web or elsewhere where they don’t have to pay Apple a big cut of in-app purchase fees, but they are very limited in their ability to incentivize customers to do it. . Apple prohibits companies like Spotify (and others) from providing links or other direct ways for customers to go elsewhere to pay.
Spotify has been fighting this for years, arguing that it gives Apple an unfair advantage with its own Apple Music service and forces them to raise prices to compensate for Apple’s declining revenue.
The report says the commission is “putting the finishing touches on a decision that would prohibit Apple’s practice of blocking music services from diverting their users from the App Store to other subscription options.” The decision is expected to be made early next year.
It’s unclear exactly what the ruling would require of Apple. With past decisions, Apple was forced to change its policy (at least in the EU). The company will likely be given a deadline after which it must allow competing music services to offer subscription options other than Apple’s in-app purchasing system. It could be broader and require such concessions beyond just music services. A fine could even be involved: the penalty for violating EU antitrust regulations in this case can be as much as 10% of a company’s total annual worldwide turnover, which in Apple’s case is would amount to tens of billions of dollars. Such maximum fines are rare, however.
