EU Music Streaming Firm Wants European Commission to Deny Apple’s Proposal

Digital Music Europe (DME), a group representing major music streaming platforms like Spotify and SoundCloud, has asked the European Commission to dismiss Apple’s proposed solutions in regards to pricing transparency and allowing third-party app downloads outside its App Store. The group’s formal May 7 plea to the Commission cites the measures proposed as inconcrete and ineffective.

The measures, which were created to comply with the European regulatory’s March order, propose to create a more transparent environment for audio streaming platforms operating within the European Economic Area.

According to Apple’s proposal, the measures would simplify the process for audio streaming platforms to notify users about alternative methods for purchasing digital subscriptions. The apps on the App Stores would be allowed to add links to their websites and Apple, in turn, would levy a 27% commission on any transaction made through these links.

Additionally, it would allow the digital music providers to inform customers of the prices available on their respective websites, via emails as well.

Digital Music Europe, in the submitted letter, expressed apprehensions, claiming that Apple’s latest initiative in music streaming services is a “discriminatory program” that will compel competitor platforms to participate in a new system controlled by Apple, according to a Reuters report.

Earlier in March, the European Commission levied a fine of €1.8 billion (approximately $1.9 billion) on Apple over its “abusive” App Stores practices. EU regulators stated that for nearly a decade, Apple’s policies restricted music streaming providers from informing users about alternative pricing options, leading users to pay higher subscription fees than necessary.

Margrethe Vestager, European Commissioner for Competition, said in the press release, “For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store. They did so by restricting developers from informing consumers about alternative, cheaper music services available outside of the Apple ecosystem.”

Even though Apple has introduced new policies in an effort to adhere to the EU mandate, its refusal of Spotify’s latest iOS version highlights its determination to uphold the current state of app distribution and payment processing protocols within the iOS ecosystem.