The European Commission issued an indictment against Apple ‘internal tax’
A subscription to streaming services through Apple’s App Store is often 30 percent more expensive than with the service itself. Apple may not prohibit app developers from informing customers about this price difference, but it does. Brussels has tapped the tech company on the fingers.
Apple may require that all app payments on iPhones, for example, go through the App Store. But the tech company shouldn’t prohibit app developers from informing people that cheaper payment options exist outside the App Store. By keeping the app developers silent that it can be cheaper, Apple is abusing its power, according to the European Commission.
The European Commission issued an indictment against Apple on Tuesday. In it, the competition watchdog focuses its Arrows on alternative payment methods.
Apple wants all payments to go through its App Store. In that case, the iPhone maker will receive 30 percent commission. Apple doesn’t get that fee if people pay directly to an app maker.
Spotify already complained about these rules in 2019. As a result, a subscription to Spotify in the App Store was 30 percent more expensive than directly with the music service.
Apple will be given the opportunity by the European Commission to respond to the indictment. After that, the regulator will make a decision on a possible criminal measure. For example, it can be a fine.