Music streaming companies push back against Apple’s App Store proposal

The music streaming industry, represented by Digital Music Europe, is taking a stand against Apple’s recent proposal in a case involving the tech giant’s App Store. Spotify and Deezer, among others, have voiced their concerns to the European Commission, urging it to reject Apple’s proposal, Reuters reported.

In a letter submitted to the European Commission, Digital Music Europe expressed apprehension regarding Apple’s proposed solution to comply with the regulator’s March order. This order came with a hefty fine of 1.84 billion euros ($1.98 billion) imposed on Apple for stifling competition from music streaming rivals through App Store restrictions.

The crux of the issue lies in Apple’s proposed program for music streaming services, which the industry group describes as discriminatory. According to the letter, Apple’s scheme compels competitors to participate in a regime controlled by Apple, rather than offering concrete and effective remedies for fair competition.

Apple’s proposed measures aim to make it easier for music streaming apps in the European Economic Area to inform users of alternative payment options outside the App Store. However, Digital Music Europe argues that Apple’s solution is flawed, as it still imposes a 27% commission on transactions made through provided links to external payment methods.

Under the proposed system, streaming services can include links to their websites to inform users about payment options beyond the App Store. Additionally, Apple suggests that developers can communicate with users via email to provide information about purchases available on their website.

Notably, last month, Apple rejected Spotify’s new version of its iOS app, which included in-app pricing information for users in the European Union. This rejection came as Spotify refused to be part of Apple’s proposed solution.