It is a common practice that digital storefronts take a cut from sales made through their platform. Apps sold through Apple’s App Store are subject to a 30% cut which goes to Apple. This also applies to in-app purchases. It may be a common practice, not everyone is happy about it of course.
In the EU, Apple has been charged by the European Commission for antitrust violations over the cut it takes from the App Store. This seems to be a response to Spotify’s complaint where according to the Commission, “it distorted competition in the music streaming market as it abused its dominant position for the distribution of music streaming apps through its App Store.”
The regulatory body says that Apple is “depriving” users of cheaper streaming choices and also forbidding developers from informing customers of alternative subscription options. A good example is Spotify, wherein the App Store, the company is charging customers $12.99 a month for Spotify Premium. It is definitely more expensive.
The company is charging $9.99 on its website if you subscribe directly from them. The difference in price is due to Apple’s 30% cut. For Apple Music, the company charges $9.99, making it a more attractive option by comparison. So it hurts the competition.
According to Reuters, if the case is pursued, Apple could face a fine of up to 10% of the company’s global turnover, which is said to be valued at around $27 billion. That is huge.
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