Music streaming firms urge European Commission to reject Apple's proposal in App Store case

Deezer SA

08/05/2024 20:47

By Jaspreet Singh
       May 8 (Reuters) - A group that represents audio
streaming firms including Spotify  SPOT.N  and France's Deezer
 DEEZR.PA  in Europe has urged the European Commission to reject
Apple's  AAPL.O  proposal in a music streaming case.
    Digital Music Europe expressed concern in a letter submitted
to the European Commission on Tuesday that Apple's proposal to
comply with the regulator's March order, in which the
iPhone-maker was fined 1.84 billion euros ($1.98 billion), does
not provide concrete and effective remedies.
    "Apple's new entitlement for music streaming services is a
discriminatory program that forces competitors to opt into a new
regime run by Apple," the letter added.
    Apple was fined by the EU in March for thwarting competition
from music streaming rivals via restrictions on its App Store.
    Subsequently, the iPhone-maker announced measures to make it
easier for music streaming apps on its App Store in the European
Economic Area to inform users of other ways to purchase digital
services, as it looks to comply with a European Union mandate.
    Under Apple's proposal, streaming services can include links
to their websites to inform users of payment options outside its
App Store and the company would charge a 27% commission on
transactions made through a link.
    Apple said the developers can provide information about
purchases available on their website to users through email as
well.
    The European Commission and the firms represented by Digital
Music Europe, including Deezer, Qobuz and SoundCloud, Jamendo
and Soundcharts did not immediately respond to requests for
comment. Spotify declined to comment. 
    Last month, Apple rejected Spotify's new version of iOS app
with in-app pricing information for users in the European Union,
as the streaming firm does not want to be a part of Apple's
proposal.

($1 = 0.9310 euros)

 (Reporting by Jaspreet Singh in Bengaluru; Editing by Shailesh
Kuber)
 ((Jaspreet.Singh@thomsonreuters.com; https://twitter.com/i_jass;))