London Daily

Focus on the big picture.
Monday, Jul 13, 2026

Apple accused of breaking EU law over App Store sales fees

Apple accused of breaking EU law over App Store sales fees

iPhone and iPad maker distorts competition for streaming services such as Spotify, says commissioner
Apple has been accused of breaking EU law by charging high fees and setting unfair rules on those selling their products in its App Store, resulting typically in a 30% price hike for paying customers.

Margrethe Vestager, the European commissioner for competition, said the preliminary view was that Apple had distorted competition in the music streaming market by abusing its dominant position and role as a “gatekeeper” to the 1.8m apps in its store.

The commissioner said it was unfair that developers had to pay up to 30% commission on sales and agree to tight rules if they wished to sell their apps on the world’s 1bn iPhones and 500m iPads.

“Apple charges a 30% commission fee for all purchases throughout its system,” Vestager said. “This means that music streaming providers cannot sell subscription on their apps without paying a 30% fee to Apple. Our investigation showed that this fee was passed on to end users by raising prices typically from €9.99 to €12.99.”

“A second concern is about the so-called anti-steering provisions,’” she added. “They limit the ability of app developers to inform iPad or iPhone users of alternative cheaper subscriptions, available elsewhere.

“In fact, to avoid paying the 30% commission, some music streaming providers decided to stop offering paid subscriptions in their apps. This is what Spotify decided to do in 2016. Since then, customers can download Spotify app in the Apple App Store, but they cannot purchase any subscription for Spotify premium services.”

The commission said that for app developers, the App Store was the sole gateway to consumers using Apple devices running on Apple’s smart mobile operating system, iOS.

Vestager said the commission’s two-year inquiry had shown that users were “very loyal” and rarely switched, and that Apple’s devices and software were said to form a “closed ecosystem” in which the company controls every aspect of the user experience.

As a result, the commission believed users of Apple devices were paying significantly higher prices for their music subscription services. “By setting strict rules on the App store that disadvantage competing music streaming services, Apple deprives users of cheaper music streaming choices and distorts competition,” Vestager said. “This is done by charging high commission fees on each transaction in the App store for rivals and by forbidding them from informing their customers of alternative subscription options.”

The commission first opened its investigation into Apple’s App Store rules on 16 June 2020.

Vestager’s announcement of a statement of objections is a the first formal step in an investigations into suspected violations of EU antitrust rules, which is likely to take years to go through the courts in Luxembourg. Any ruling would then be liable to an appeal.

In the first instance, the commission informs the parties concerned in writing of the objections raised against them and may reply in writing and request an oral hearing to present their comments.

There is no legal deadline for bringing an antitrust investigation to an end.

Spotify’s head of global affairs and chief legal officer, Horacio Gutierrez, said: “Ensuring the iOS platform operates fairly is an urgent task with far-reaching implications.

“The European commission’s statement of objections is a critical step toward holding Apple accountable for its anti-competitive behaviour, ensuring meaningful choice for all consumers and a level playing field for app developers.”

On Friday night, an Apple spokesman said: “Spotify has become the largest music subscription service in the world, and we’re proud for the role we played in that.

“Spotify does not pay Apple any commission on over 99% of their subscribers, and only pays a 15% commission on those remaining subscribers that they acquired through the App Store.

“At the core of this case is Spotify’s demand they should be able to advertise alternative deals on their iOS app, a practice that no store in the world allows. Once again, they want all the benefits of the App Store but don’t think they should have to pay anything for that. The commission’s argument on Spotify’s behalf is the opposite of fair competition.”
Newsletter

Related Articles

0:00
0:00
Close
United Kingdom Financial Markets Monitor Business Response to Economic Policy Changes
Scottish Renewable Energy Expansion Highlights Need for Faster Grid Development
Wales and Regions Strengthen Focus on Economic Development Through Tourism and Investment
Retail Industry Warns High Street Businesses Remain Under Pressure
Police Chiefs Highlight Growing Challenges Managing Protests and Public Order
Agriculture Leaders Seek Clarity on Post-Brexit Farming Support and Environmental Rules
Transport Unions Warn of Further Industrial Action Over Pay and Working Conditions
Welsh Tourism Sector Reports Strong Growth Driven by Domestic and International Visitors
National Infrastructure Review Gains Support as Leaders Seek Faster Project Delivery
Financial Markets Assess Impact of United Kingdom Corporate Tax Policy Changes
Northern Ireland Assembly Debates Cross-Border Trade and Infrastructure Cooperation Plans
Government Opens Consultations on Housing Reform and Planning System Changes
Scottish Government Faces Pressure to Accelerate Offshore Wind and Grid Expansion
National Energy System Operator Warns Grid Investment Is Needed for Future Electricity Demand Growth
United Kingdom Research Council Invests in Artificial Intelligence and Biotechnology Innovation Hubs
United Kingdom Expands Oversight of Skilled Worker Visa Sponsors Amid Migration Debate
Cross-Party MPs Call for National Infrastructure Strategy Review to Accelerate Economic Growth
Prime Minister Announces One Billion Pound NHS Funding Package Ahead of Winter Pressures
Bank of England Signals Cautious Approach to Interest Rates as Inflation Remains Above Forecasts
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
Innovation-led growth strategy
Public service reform pressure
Defence and industrial security
Labour leadership transition and economic reset
Northern England Pushes for Greater Influence in Britain’s Future Economic Model
UK Technology Strategy Focuses on Life Sciences, Digital Innovation and Research Investment
Britain and United States Maintain Focus on Pharmaceuticals Cooperation and Industrial Growth
UK Public Services Face Continued Pressure as Government Promises Visible Improvements
Regional Economic Power Becomes Key Theme in Britain’s Next Political Phase
Britain Expands Support for Small Businesses as Firms Seek Better Access to Finance
UK Economy Remains Central Political Challenge as Cost of Living and Growth Concerns Persist
National Health Service Introduces New Workplace Reviews to Improve Conditions for Healthcare Staff
UK Life Sciences Sector Secures More Than Three Billion Pounds in Investment to Support Innovation
Britain Strengthens Defence Strategy as Security Concerns Reshape Military and Industrial Policy
Andy Burnham Promises Stronger UK Defence Industry and Expanded Domestic Production
UK Government Faces Difficult Spending Choices as Labour Leadership Transition Approaches
Rachel Reeves Warns Andy Burnham of Immediate Economic Challenges After Expected Leadership Change
Andy Burnham Prepares to Lead UK Government With Plans for Regional Power Shift and Economic Reset
Government Creates Emergency Support Scheme for Financially Struggling Universities
United Kingdom Replaces Traditional Farm Subsidies With Payments Linked to Environmental Performance
National Grid Reports First Week of Electricity Generation Without Fossil Fuels
United Kingdom Financial Regulator Introduces Tougher Capital Rules for Cryptocurrency Exchanges
Belfast Harbour Expands Operations to Attract Investment Through United Kingdom and European Union Market Access
Scottish Government Threatens Legal Challenge Over Westminster Cuts to North Sea Transition Funding
United Kingdom Accelerates Trans-Pennine High-Speed Rail Project Linking Northern Cities
United Kingdom Secures Ten Billion Pound Investment for Cambridge Quantum Computing Campus
Port Talbot Steelworks Wins Support for Green Hydrogen Transition and Protection of Industrial Jobs
United Kingdom Sends Royal Navy Carrier Strike Group to Indo-Pacific as Regional Security Focus Expands
×