×

E.U. to Launch Investigation Into Apple After Spotify’s Complaint (Report)

The European Union will open a preliminary investigation into Apple following Spotify’s antitrust complaint, according to a report published in the Financial Times.

In its complaint filed to the European Commission in March, Spotify, which ranks as the the market leader in music streaming, said Apple was “tilting the playing field to disadvantage competitors” and favor its own Apple Music streaming service through a 30% cut that Apple takes from subscriptions made via the App Store. Spotify also claimed that Apple was blocking their access to products and updates to their app.

Quoting unnamed sources, the Financial Times said that the European Commission, the E.U.’s executive arm, was expected to confirm the date for the start of the preliminary investigation in the coming weeks. It will be led by the office of Margrethe Vestager, who has taken aim at tech giants such as Google during her tenure as the E.U.’s antitrust commissioner.

Spotify said in its complaint in March that Apple had abused its position. “In recent years, Apple has introduced rules to the App Store that purposely limit choice and stifle innovation at the expense of the user experience – essentially acting as both a player and referee to deliberately disadvantage other app developers,” Spotify founder and CEO Daniel Ek said.

Apple responded to Spotify’s complaint by saying that it has “approved and distributed nearly 200 app updates on Spotify’s behalf, resulting in over 300 million downloaded copies of the Spotify app.”

“After using the App Store for years to dramatically grow their business, Spotify seeks to keep all the benefits of the App Store ecosystem – including the substantial revenue that they draw from the App Store’s customers – without making any contributions to that marketplace,” said Apple, adding that Spotify “distributes the music you love while making ever-smaller contributions to the artists, musicians and songwriters who create it – even going so far as to take these creators to court.”

More Digital

  • Vobile - ZEFR acquisition - Yangbin

    Zefr Sells Its Copyright-Flagging and YouTube Channel-Management Businesses to Vobile for $90 Million

    Vobile Group, a video protection and measurement company, announced a deal to acquire Zefr’s RightsID copyright-management and ChannelID YouTube channel-management businesses for about $90 million. According to the companies, Zefr’s RightsID and ChannelID together generated over $40 million in revenue in 2018 and were profitable. The deal stands to more than triple the revenue for [...]

  • Justin Connolly

    Disney Merges All Media Sales and TV Channel Distribution Under Justin Connolly

    Disney promoted longtime ESPN exec Justin Connolly to the new role of president, media distribution, overseeing a single organization that combines all of the company’s media sales and TV channel distribution operations. Connolly previously served as EVP, affiliate sales and marketing, Disney and ESPN Media Networks. Based in New York, he will report to Kevin [...]

  • NASA - International Space Station

    Hulu Is Getting NASA TV in Time for the Moon Landing Anniversary

    Hulu’s live TV service is getting NASA TV just in time for the 50th anniversary of the Apollo 11 mission. In addition to a live feed, which is available only to subscribers of Hulu’s live TV tier, Hulu is also gaining access to select NASA TV series on demand. The live TV deal was announced [...]

  • iheartmedia logo

    iHeartMedia Stock Drops in NASDAQ Debut

    Shares of iHeartMedia, the U.S.’s biggest radio network, fell as much as 7% after they commenced trading Thursday on the NASDAQ Global Select Market, and ended the day down around 3%. Last month, after exiting a year-long bankruptcy reorg, iHeartMedia announced it was approved for listing on NASDAQ, instead of pursuing an IPO. The company’s [...]

  • iHeartMedia-Pride-Media-TheOutcast-Logo

    iHeartMedia, Pride Media to Co-Produce Slate of LGBTQ+ Podcasts

    iHeartMedia is teaming with Pride Media, the media company whose brands include Out, The Advocate and Pride, to co-produce a slate of LGBTQ+ podcasts in 2019-20. The partnership will kick off with “The Outcast,” an iHeartRadio original podcast co-produced with Out Magazine. Hosted by Out Magazine deputy editor Fran Tirado, the weekly podcast will explore [...]

  • Netflix Reed Hastings

    Netflix Shares Dive After Q2 Stumble: Just a Hiccup or Sign of Bigger Trouble?

    Netflix badly undershot its subscriber forecasts for the second quarter of 2019 — posting its first net U.S. customer decline since 2011 while growth slowed considerably overseas. The company added 2.7 million subs worldwide, almost half as many as the 5 million it had projected. With the big miss, Netflix shares took a predictable hit, [...]

More From Our Brands

Access exclusive content