The world’s largest iPhone factory, located in China and operated by Foxconn, faced disruptions in 2022. This likely reflected in Apple’s results for the December quarter. Meanwhile, analysts questioned the demand for the iPhone 14 from Chinese consumers.
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The European Union on Tuesday sent an apple an updated list of objections in the ongoing antitrust case to the App Store’s rules for music streaming providers such as Spotify.
The European Commission, the EU’s executive body, launched an antitrust investigation into Apple in 2020 after Spotify complained about Apple’s licensing agreements in 2019. These agreements mean that app developers must pay a 30% commission on all subscription payments that come through the App Store.
On Tuesday, the commission scaled back its previous “statement of objections” against Apple, which it published in 2021. The filing initially alleged that Apple was “abusing its dominant position” by forcing its own technology to pay for in-app purchases on music streaming app developers. , and also limited the ability of developers to inform iOS users about other available music subscription services.
On Tuesday, the commission dropped the first charge and said it would focus on Apple’s anti-governance commitments.
Shares of Spotify and Apple were little changed on Tuesday.
“Today, the European Commission sent a clear message that Apple’s anti-competitive behavior and unfair practices have harmed disadvantaged consumers and developers for too long,” Spotify’s general counsel, Eva Constant, said in a statement. “We urge the commission to make a swift decision in this case to protect consumers and restore fair competition on the iOS platform.”
Spotify, a direct competitor to Apple Music, is “by far” the most popular music streaming service in the US and UK, among other countries, according to a report by economists at the Analysis Group. iPhone users in the US spend 50% more time on Spotify than on Apple Music, with the gap even wider in the UK, according to a report.
An Apple spokesman said the company would continue to promote competition and work with the Commission to respond to their concerns.
“We are pleased that the Commission narrowed its case and no longer challenges Apple’s right to collect fees for digital goods and to require the use of in-app payment systems that users trust,” the spokesperson said. “The App Store has helped Spotify become the leading music streaming service in Europe, and we hope the European Commission will stop its pursuit of a baseless complaint.”
The company said it has always worked to develop competition and that it will continue to promote choice for European consumers.
