The European Commission has charged the iPhone maker with breaking antitrust laws by imposing unfair rules on distributing apps via the App Store. The EU’s executive arm accused Apple of abusing its market power in two ways: forcing developers to use Apple’s own in-app payment system — which gives the tech giant a 30% cut — and banning them from informing customers about alternative subscription options. EU antitrust czar Margrethe Vestager said the restrictions meant consumers were losing out: The EU’s case stems from a 2019 complaint by Spotify, which accused Apple of distorting competition with its fees. [Read: 3 new technologies ecommerce brands can use to connect better with customers] In a statement, Spotify’s chief legal officer, Horacio Gutierrez, said he welcomed the EU’s response:
— Margrethe Vestager (@vestager) April 30, 2021 Apple fired back at Spotify, saying the App Store had played a key role in the streaming giant’s rise: The case still has a long way to go. The preliminary findings will now move through the courts, and Apple will likely appeal any verdict. If found guilty, Apple could face a fine of up to 10% of its global turnover, which would hit $27 billion based on the firm’s revenue last year. However, the Silicon Valley giant can take some confidence from previous battles with the EU. Last year, the bloc’s second-highest court overruled an order for the company to pay $14.9 billion in back taxes to Ireland.
