In March, Apple was fined €1.8 billion ($2 billion) in response to a 2019 Spotify lawsuit. The core of the issue was that Apple charges app developers a 30% fee when consumers subscribe to their services for a year, and 15% for successive years.
This behaviour hurt Spotify because it had to raise its subscription fees to cover the fee, providing Apple Music an unfair advantage.
Apple isn’t just accepting the fine. According to Bloomberg, Apple has filed a lawsuit with the EU’s General Court in Luxembourg, seeking to appeal and revoke the significant penalty.
European Commission
According to Apple, the European Commission failed to provide persuasive evidence that customers suffered as a result of its App Store restrictions.
However, it appears that this ignores how antitrust rules work, as predatory pricing is specifically outlawed from the start, regardless of whether it affects anyone or not.
Outside the App Store
Previously, apps could not even imply consumers might subscribe for a lower price outside the App Store. Yet, the EC has recently issued regulations forcing Apple to allow app creators to offer other payment methods.
Thanks to these changes, publishers on Apple’s App Store can now include buy links while avoiding the Apple Tax.
Initial 15-30% range
Apple, on the other hand, continues to profit from fees, which range from 12 to 27% of the total. While this is a tiny decrease from the initial 15-30% range, it remains a small decline.
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