We noted yesterday that Spotify welcomed Apple being fined $2B for antitrust offences relating to streaming music services.
The tone of the company’s response, however, strongly suggests that it believes the iPhone maker will repeat what some have described as Apple’s “malicious compliance” in another antitrust case …
The dispute in a nutshell
Apple’s App Store rules don’t allow Spotify to directly link to an option to take out a paid subscription to the service, without handing over a 30% cut to the iPhone maker. The App Store policy on this is known as an anti-steering provision, since it bans developers from steering users to their own payment links.
Spotify considered this to amount to Apple Music getting an unfair advantage over Spotify and other competing music service, and complained to the European Union. The EU ruled that Apple was indeed guilty of anti-competitive behavior, and fined the company $2B.
Apple hasn’t admitted any wrong-doing, and says that since Spotify is the biggest streaming music app on the market, that’s proof that it hasn’t been damaged by the App Store policy. Accordingly, it is appealing the ruling.
Spotify hints at possible malicious compliance
In addition to the fine, the EU ruling requires Apple to remove the anti-steering policy. Apple has made some progress toward this, but it’s likely that the EU will expect further changes to fully comply.
Last time Apple was required to comply with antitrust rules, by allowing third-party app stores, the company responded aggressively. It said, sure, you can sell iPhone apps outside the App Store, but we still expect a 27% cut. This response has been described as “malicious compliance,” as it would defeat the purpose of the ruling by preventing third-party app stores from effectively competing.
Spotify strongly implies that Apple is likely to take a similar approach here:
While we appreciate the EC addressing this important case, we also know that the details matter. Apple has routinely defied laws and court decisions in other markets. So we’re looking forward to the next steps that will hopefully clearly and conclusively address Apple’s long-standing unfair practices.
In Europe as in the US, the matter isn’t likely to be settled for some time, until Apple’s appeal has worked its way through the court system.
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