The European Commission has provided Apple with its preliminary opinion that it “distorted competition” in the music streaming space since it took advantage of its “dominant position” in the distribution of music streaming programs by the way of its App Store.
The Commission “takes issue” with the required use of Apple’s in-app purchasing technology by music streaming app developers to provide users with their apps through the App Store. It is also “concerned” that the firm puts some limitations on the developers from telling Apple tablet and smartphone users about different buying options that provide lower prices, according to a statement.
“By setting strict rules on the App store that disadvantage competing music streaming services, Apple deprives users of cheaper music streaming choices and distorts competition,” Executive Vice-President Margrethe Vestager said in the statement.
The Commission preliminary found that Apple has a dominant position in the market for the distribution of music streaming apps through its App Store. For app developers, the App Store is the sole gateway to consumers using Apple’s smart mobile devices running on Apple’s smart mobile operating system iOS. Apple’s devices and software form a “closed ecosystem” in which Apple controls every aspect of the user experience for iPhones and iPads.
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