FTC launches antitrust investigation into Apple music streaming policy

Spread the love

The US competition watchdog FTC is said to be investigating claims that Apple is violating antitrust law with its policy on music streaming services. This has to do with the fact that competitors have to give up part of the subscription fee on iOS.

Anonymous “industry” sources have told Reuters news agency that the US Federal Trade Commission is investigating complaints about Apple’s policies on music streaming services. It is not known who submitted the complaints, but it is likely that they are competitors of Apple, such as Spotify. While the FTC is looking into the complaints, a formal investigation has not yet begun, the sources said.

The complaints focus on Apple’s policy of skimming 30 percent of the sale price on iOS applications. This also applies to providers of subscription services, as is common with music streamers. For example, Spotify must hand over 30 percent of its subscription fees of 10 euros per month, per user, to Apple. The company then increased the price for users who want to take out a subscription via the app, and advises users to pay via its own website from now on, so that no money has to be paid to Apple.

Since Apple has also been offering its own music streaming service since last month, competitors believe the company is violating antitrust laws. Because competitors have to surrender 30 percent, Apple’s own service would be favored. Incidentally, Apple had previously come under fire with its Music service, when it turned out that artists were not compensated for songs that users play during their free trial period. After a complaint from Taylor Swift, Apple reversed that policy.

AppleApple MusiciOSiOS ApplicationsNewsReutersSongsSpotifyStreamingtaylor swift