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Spotify Technology SA (NYSE:SPOT) is intensifying its legal battle with Apple Inc. (NASDAQ:AAPL) in the European Union, with the European Commission now considering a second investigation into Apple’s new music streaming app policy.
What Happened: Spotify has been making changes to its app, such as displaying pricing information in-app for EU users, to comply with the European Commission’s antitrust ruling against Apple, reported The Verge.
The Commission fined Apple $1.95 billion in March for anti-steering rules that hindered competition and consumer choice.
Apple responded by introducing a new entitlement program, which would allow music streaming apps to include external links to purchases but with a 27% commission.
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When Spotify tried to update its app to bypass this fee, Apple rejected the update, leading to the dispute being referred back to the European Commission.
Spotify’s associate general counsel, Harry Clarke, stated that the company’s primary goal is to improve user experience and communication about prices and plans.
Apple’s changes have led to an investigation by the Commission, and if any wrongdoing is found, it could face two enforcement actions in the EU. Spotify is confident that the EU will act in its favor.
Why It Matters: The ongoing legal battle between Spotify and Apple in the EU has been a long-standing issue. It began with Spotify’s accusations against Apple for subverting the goals of the Digital Markets Act (DMA) through its proposed “Alternative App Store” changes.
This led to a backlash from other tech giants like Meta Platforms Inc. and Microsoft Corp.
Apple's "Alternative App Store" model for its EU users could cost companies like Meta Platforms millions of dollars in yearly payments, according to a Benzinga analysis.
Price Action: Spotify's stock was up 1.12% in premarket trading on Thursday, while Apple's stock was down 0.1%, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo by David Švihovec on Unsplash
