European Commission is investigating Apple Inc (NASDAQ: AAPL) anti-competitive behavior and now he made his move. The Authority issued a statement against the company in an attempt to curb its anti-competitive behavior.
European Commission Increases Pressure on Apple
In a previous “objection statement”, the authority acknowledges that Apple is trying to fight competition in the music streaming space. Competing steam app developers are going through a tough time, and that’s because Apple charges them exorbitant fees to stream their music.
Apple is due to respond to preliminary charges within about 12 weeks.
The European Commission has focused on both Apple Pay and the App Store. It began operations last summer.
The Commission expresses grave concern over how Apple is progressing with its in-app purchase mechanism. Hot app developers struggled to spread their apps across Apple’s platform, and the organization found that Apple was responsible for the problems these competitors were facing.
The panel also raised concerns about how Apple is introducing restrictions that make it difficult for other app developers to work. The commission notes that the app developer had no freedom to show iPad and iPhone users what they can turn to when they need alternative and cheaper buying opportunities.
Apple engages in anti-competitive practices
The objection statement attacks Apple with its harsh rules. The company has acted unfairly against the developers of music streaming apps. Ap0ple worked with some strings attached that made them rely on its proprietary in-app purchase system whenever they wanted to participate in the distribution of paid digital content. App developers were required to pay a 30% commission as developer subscription fees.
Apple’s anti-steering policies have long had a huge impact on app developers, and many want Apple to end its unfair actions. It also pushes Apple to move away from unfair practices that prevent developers from informing users about other purchase options they need to consider.
The Commission reports that many optimization service providers paid a 30% commission set by Apple. End users suffered the consequences because the app developers had to shift costs. Apply gives users the freedom to use subscriptions from other service providers. However, banning application developers from serving end users with other options makes Apple “unrealistic.”