Apple Inc. is set for a showdown with European Union antitrust regulators, insisting it doesn’t need to make any more changes to its App Store after it was hit by formal charges over its treatment of music streaming rivals such as Spotify Technology SA.
The iPhone maker will argue at a hearing in Brussels on Friday that the EU wrongly accused it of illegal curbs on the likes of Spotify that prevent developers from steering users away from the App Store.
Apple will say it’s already addressed any possible competition concerns over the past two years with changes that create a fair balance between the interests of Apple and app developers, according to a person familiar with the US firm’s thinking, who spoke on condition of anonymity.
Apple was slapped with a revised charged sheet by the EU in February, which showed the commission had narrowed its probe, but continued to focus “on the contractual restrictions that Apple imposed on app developers which prevent them from informing iPhone and iPad users of alternative music subscription options.”
Spotify says that Apple’s anti-steering rules prohibit it and other developers “from telling consumers about any deals or promotions through their own apps.”
“These rules still exist today and Apple’s supposed changes in fact change nothing at all and are just for show,” Spotify said in a statement. “We support the European Commission and believe that the” charge sheet “addresses Apple’s unfair business practices.”
EU Narrows Apple Case to Curbs on Apps Flagging Cheaper Deal
Spotify, the most popular music app in Europe, has been one of Apple’s fiercest critics, pressing the EU’s antitrust unit into action with a complaint over how Apple takes an unfair cut of its subscription fees.
Apple faces a potential fine of as much as 10% of its annual sales if it fails to convince the commission of its arguments and antitrust regulators conclude there’s been an infringement of EU rules — although penalties seldom reach such levels. There is no legal deadline for the commission to conclude its probe.
The commission didn’t immediately respond to requests for comment.
--With assistance from Samuel Stolton.
(Updates with Spotify comment from fifth paragraph)
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