The App Store, Spotify, and Europe’s thriving digital music market
Apple NewsroomMar 04
EU Fines Apple Nearly $2B Following Spotify Lawsuit
The Facts
The EU fined Apple €1.8B ($1.9B) on Monday — four times more than expected — for illegally edging out music streaming rivals like Spotify.
Apple must now let rival streamers "communicate freely with their own users," said Margrethe Vestager, the European Commission Executive Vice President for competition policy.
The Spin
Narrative A
The European Commission has not presented ample evidence in this case. Spotify itself has grown and cornered a huge 56% share of the European music streaming market — mostly piggybacking off of Apple for free. Other developers, too, have gained a lot from Apple's App Store, and yet around 86% do not pay the "store owner" any commission. Spotify isn't even satisfied with this outcome and wants the App Store revamped to suit itself. Apple should and will appeal this ruling.
Narrative B
Apple has long praised itself even as it crushed smaller rivals of Apple Music. It's difficult to understand how Spotify reaching out to its own users with information about deals that benefit the same users can be Apple's problem just because it owns the App Store. Apple curbing Spotify users' choices is repugnant to the idea of a fair and open digital marketplace — a pillar of the internet itself. One "bad Apple" can ruin an entire industry, which is why the EU has put an end to such behavior.
Nerd narrative
There's a 50% chance that iPhones will have a default search provider other than Google by 2028, according to the Metaculus prediction community.