The European Union's investigation into Apple's AppStore is now said to focus on the company's restrictions against rivals like Spotify and Netflix.
The EU is narrowing its focus on Apple’s App Store, a new report says. Coming from the Financial Times, which cites three sources familiar with the matter, the body now plans to focus on Apple’s ban against linking to subscriptions off the App Store. The EU confirmed this report in an update to its statement of objections shared on Tuesday morning.
In this scenario. Apple could charge for Apple TV Plus and Apple Music at, say, $9.99 a month, while competitors Netflix and Spotify would have to contend with the 30% App Store tax and either raise their prices and risk being seen as expensive — or simply eat the cost if they wanted to make use of the convenience of the App Store’s payment services. At the same time, they are also unable to direct customers to cheaper alternatives elsewhere.
If Apple is found to be in violation of EU law, it could see a fine of up to 10% of its annual worldwide revenue, the body says. Should the EU further strike this anti-steering rule down and a change is made, app developers like Spotify and Netflix would be able to notify customers of cheaper alternatives away from the App Store.
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