Apple Appeals $2B EU Antitrust Fine Over Spotify Complaint

Highlights

• Apple appeals $2 billion EU antitrust fine following Spotify’s 2019 complaint
• Spotify accused Apple of unfair App Store rules benefiting Apple Music
• EU imposed the fine on Apple for anti-competitive practices
• Spotify testing ‘Enhanced Listening’ for lossless streaming service

Apple has filed an appeal against the $2 billion in antitrust fines imposed by the European Union in March, responding to a complaint by Spotify.

Spotify’s Complaint Against Apple

Spotify filed a case against Apple in 2019, arguing that App Store rules are giving Apple Music an unfair advantage against its service.

While Apple Music was able to offer in-app subscriptions without having to pay Apple a commission, Spotify had to pay the company 30% in the first year and 15% in subsequent years if it offered the same service.

Moreover, the music streamer was banned from directly linking to its online subscription page from inside its app.

Apple Fights $2B Antitrust Fine

The EU agreed with Spotify after a lengthy investigation and imposed a fine of €1.8 billion ($2 billion) on Apple for acting in an anti-competitive manner.

Apple disagreed with the decision and has now filed an appeal.

Apple does not argue that its rules do not hurt Spotify.

Instead, the company claims that antitrust laws are meant to protect customers, and no one can show that consumers were hurt here.

This view is typical of Apple’s fighting posture against antitrust decisions and legislation both here and abroad.

Spotify to Bring Enhanced Listening

In more news, it looks like Spotify is testing out ‘Enhanced Listening’ which might be the ultimate name for its own lossless streaming service similar to Apple’s.

Screenshots from a desktop app upgrade provide some interesting details about how this better audio experience could work.

For one, leaks show that users will be able to download lossless tunes in ‘maximum quality’ for offline playback.

Even more astonishingly, certain songs are to be transcoded to 24-bit FLAC, an audiophile-grade codec that sounds like bliss.

Screenshots also show the impressive bitrates on offer, with one example showing 2117 kbps streaming.

To put it in perspective, this equates to about 15.9MB of data used per minute of music.

This is a significant step up from Spotify’s current 320kbps cap.

FAQs

Why did the EU fine Apple $2 billion?

The EU fined Apple $2 billion after agreeing with Spotify’s complaint that Apple’s App Store rules gave Apple Music an unfair advantage, restricting Spotify’s ability to compete.

What were Spotify’s main complaints against Apple?

Spotify’s complaints included Apple’s 30% commission on in-app subscriptions for the first year (15% thereafter) and the ban on Spotify linking directly to its online subscription page from its app.

How is Apple responding to the EU’s decision?

Apple has filed an appeal against the $2 billion antitrust fine, arguing that antitrust laws are meant to protect consumers and that there is no evidence of consumer harm in this case.

What is Spotify’s ‘Enhanced Listening’ feature?

‘Enhanced Listening’ is Spotify’s upcoming lossless streaming service, which may allow users to download lossless tracks in ‘maximum quality’ and stream music in 24-bit FLAC, offering higher bitrates than the current 320kbps cap.

Also Read: Vision Pro Launch To See Major Apps Like YouTube and Spotify Absent

Also Read: Spotify Music Playlists Is Reportedly Getting A New AI-Powered Feature