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June 26, 2024

European Union regulators accuse Apple of breaching the bloc’s tech rules

The European Union has indeed accused Apple of violating its competition rules. This stems from a complaint by the music streaming company Spotify in 2019. Spotify alleged that Apple was using its App Store to favour its own services (Apple Music) and disadvantage competitors. The EU focused mainly on the so-called "30% rule", where digital content providers are required to sell their goods and services through Apple's in-app payment system, from which Apple takes a 30% cut. Spotify argued this forced them to raise their prices, putting them at a disadvantage to Apple Music. The EU believes this conduct harms competition in the music streaming market, infringes EU competition rules, and deprives users of cheaper music streaming choices. Apple can respond to the EU's accusations and potentially face a large fine or be forced to change its business practices.