European consumer advocacy group Euroconsumer has launched a class action lawsuit against Apple in Belgium, Italy, Spain and Portugal. The reason was the high cost of subscription to third-party music streaming services for iOS users. Due to the 30% AppStore commission, Apple’s competitors were forced to increase the cost of subscriptions, which is why European users overpay about 3 euros for music every month, according to Euroconsumer.
Image Source: SatyaPrem/Pixabay
Euroconsumer’s lawsuit focuses on the App Store’s policies and their impact on the digital music industry market: “Apple did not play fair. As a major technology player, the company abused its power by imposing additional fees of up to 30% on unaffiliated music streaming services through the App Store.” Affected platforms include Spotify, Deezer, YouTube Music, SoundCloud, Amazon Music, Tidal and Qobuz.
Euroconsumer estimates that Apple made around €259 million in “unfair profits” in Europe alone. The organization is fighting to return overpaid funds to more than 500 thousand victims in four countries. It’s important to note that companies are not required to increase fees to operate on the App Store, but many music streaming services have decided to pass on the additional costs to European users.
Apple disputes the allegations, citing changes to its fee structure. The company introduced a reduced rate of 15% for subscriptions lasting more than a year, instead of the flat 30% fee that Spotify still talks about. Despite this, many services continue to claim that Apple charges higher fees than they actually do.
The situation around Apple and its App Store is attracting the attention of regulators. In March 2024, the European Union (EU) fined the company $2 billion for anti-competitive behavior by limiting the ability of developers to inform users about alternative payment methods. The decision was made despite Apple’s lack of dominance in the EU music streaming market.
Euroconsumer has a long history of litigation with the American corporation. In 2020, the organization filed a lawsuit over an iOS update that reduced the clock speed of iPhone processors to ensure system stability. In 2021, the group demanded that Apple address the issue of excessive iPhone battery drain in iOS 14.5 and subsequent updates.