EU charges Apple with breach of competition law

The iPhone maker unfairly puts music-streaming rivals at a disadvantage due to its App Store rules, the EU's competition commissioner has said.

EU antitrust regulators on Friday charged Apple with illegally distorting competition in the music-streaming market through restrictive App Store rules.

It is one of the biggest-ever competition cases against the US tech giant and could lead to hefty fines.

An Apple spokesperson rejected the accusations, saying the EU's case was "the opposite of fair competition."

The charges follow an EU investigation stemming from a complaint by the popular musicstreaming service Spotify.

What is the EU accusing Apple of?

"Our preliminary conclusion: Apple is in breach of EU competition law," EU Competition Commissioner Margrethe Vestager said in a statement.

The European Commission,

the EU's executive arm, said Apple's App Store rules force rival developers to use its inapp payment system — which charges up to 30% commission — and prevent them from informing users of cheaper payment methods.

Vestager said this ultimately raised the cost for consumers and limited their choice.

"By setting strict rules on the App Store that disadvantage competing music streaming services, Apple deprives users of cheaper music streaming choices and distorts competition," the commissioner's statement said.

"This is done by charging high commission fees on each transaction in the App Store for rivals and by forbidding them from informing their customers of alternative subscription options."

How did the charges come about?

This is the first EU antitrust charge targeting Apple. It follows an investigation by the bloc, launched in June, which found that the App Store commission fees are passed on to consumers.

The probe was launched after Swedish music streaming app Spotify, which competes with Apple Music, lodged a complaint about the company's rules two years ago.

The European Commission said Apple now has the chance to respond to the allegations and present its case in a hearing before a final ruling is handed down. The US company could be slapped with fines of as much as 10% of its global turnover.

How did Apple respond?

An Apple spokesperson rejected the charges and accused Spotify of wanting "all the benefits of the App Store," without thinking "they should have to pay anything for that."

"Spotify has become the largest music subscription service in the world, and we're proud of the role we played in that," the spokesperson said, but added that "the Commission's argument on Spotify's behalf is the opposite of fair competition."

nm/rt (AFP, dpa, AP, Reuters)

multimillionaire and hobby pilot has often made statements that didn't go down well with party moderates:

Last year he blamed Germany's rising welfare costs on the influx of migrants. Most recently, he called for an end to the linguistic debate of ways to create gender-neutral forms in the German language. He was also previously slammed for homophobic comments: He mentioned homosexuals and pedophiles in the same breath, when asked by an interviewer whether he thought Germany could one day have a homosexual chancellor. He later said he "regretted" his comments.

But in the end, says political scientist Münch, there's just one red line that Merz can't cross.

"As long as Merz doesn't somehow give the impression that he's an ally or that he could get too close to far-right AfD, he would still be widely accepted both by CDU party members, as well as the electorate," she said.

Dusting down the CDU

The presence of 65-year-old

Merz at the side of 59-year-old Laschet will do little, however, to rejuvenate the CDU's image — especially as the Green party has emerged as its main competitor.

"Right now, Germany, and especially the German media are very enthusiastic about [the Green's chancellor candidate] Annalena Baerbock. She's currently considered a green, young, fresh force," political analyst Münch observes.

The average age of CDU/CSU members, meanwhile, is 60. "The image of the CDU and CSU, is of a party that's a little dusty, a little slow and not as modern as the Greens," Münch says.

The coming months will be a balancing act for the CDU. "To succeed they have to do away with the old image, while also making it clear that they're reliable," says Münch. "Because that's something that's always important to the Germans in the end."

For now, personal ambitions and jockeying for ministerial posts will have to take a back seat while the conservatives' main aim remains: Hold onto the chancellery when Merkel steps down.

While you're here: Every Tuesday, DW editors round up what is happening in German politics and society, with an eye toward understanding this year’s elections and beyond. You can sign up here for the weekly email newsletter Berlin Briefing, to stay on top of developments as Germany enters the post-Merkel era.

The EU says Apple's App Store rules squeeze out other music streaming services