The European Commission is set to force Apple to change to its App Store rules following a complaint filed nearly five years ago by Spotify. The tech giant could also be fined by the EU for anti-competitive conduct in relation to its rules around in-app payments on iOS devices.
Sources who have spoken to Bloomberg say that EU regulators are putting the finishing touches to their ruling following the lengthy investigation that was instigated by Spotify's complaint. A final decision should be published early next year.
Spotify and other app-makers have long complained about the rules enforced by Apple and Google regarding payments within apps on iOS and Android devices respectively. Many app-makers are forced to use Apple and Google's own commission-charging payment systems - and aren't allowed to sign-post alternative payment options outside the app.
Various app-makers have sought to force a change to those rules, either by putting pressure on regulators or via legal action. Spotify filed its complaint against Apple with the European Commission in 2019. Investigators then gave a preliminary view in 2021 that Apple's rules did distort the music streaming market.
As the investigation continued, Bloomberg reports, Apple argued that it has already relaxed its rules in some circumstances for some apps. Which is true, though generally due to regulator pressure elsewhere in the world. For example, for some apps, including Spotify, the rule regarding sign-posting alternative payment options was changed.
These changes address the EC’s competition concerns, Apple claimed. However Spotify countered that restrictions still existed and that Apple’s concessions were "just for show".
The EC's final decision seems likely to force more concessions from Apple. Regulators could in theory also fine the tech giant up to 10% of its annual sales because of its anti-competitive conduct, though any fine seems likely to be more modest and the forced rule change will be more significant.