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european antitrust bureaucracy The company has fined American tech companies so many times that the nearly $2 billion fine imposed on Apple over its App Store rules seems like yesterday in Brussels. Maybe. But this episode is a little different. First, European targets typically do not include Apple. And perhaps because CEO Tim Cook isn’t used to being on the receiving end of these fines, the European Commission’s decision prompted a lengthy response from Apple, in which the iPhone maker announced the Spotify investigation and He blamed the resulting fine. Perhaps the research got under Cook’s skin. Apple’s already struggling stock price fell 2.5% on Monday, but Spotify stock rose by about the same amount, suggesting investors are paying attention, too.
Attention was drawn to Apple’s rules that prevent developers from directing users outside of their apps, such as websites where customers can get better deals on their products and services. Yes, this is eye-opening, but it’s important to remember that some companies, like Spotify (and Amazon), charge Apple for every transaction that occurs within their apps. It’s just that these rules are in place because you don’t want to pay 30%. So they devised a complex workaround that Apple tries to stop with these “anti-steering” rules. The results are a mess. For example, a Spotify subscriber cannot change his subscription plan within his Spotify app on iOS. “We know it’s not ideal,” the Spotify app says of its limitations. The app doesn’t offer any suggestions on where or how to change your plan. A Spotify subscriber had to understand that in order to subscribe or make changes, he would need to visit Spotify’s website.
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