European consumer advocacy group Euroconsumer has filed a class-action lawsuit against Apple in Belgium, Italy, Spain, and Portugal. The lawsuit targets the high costs that iOS users face for third-party music streaming services. Due to Apple’s 30% commission on the App Store, competitors like Spotify and Deezer have increased subscription fees, causing European users to overpay by about 3 euros monthly, according to Euroconsumer.
App Store’s Impact on Music Streaming
Euroconsumer claims that Apple’s policies have led to “unfair profits” for the company. The group states, “Apple did not play fair. As a major tech player, the company abused its power by imposing additional fees of up to 30% on unaffiliated music streaming services.” Affected platforms include Spotify, Deezer, YouTube Music, SoundCloud, Amazon Music, Tidal, and Qobuz.
Euroconsumer estimates that Apple has gained around 259 million euros in unfair profits within Europe alone. They aim to return overpaid funds to over 500,000 users across four countries. While companies aren’t obliged to raise their prices, many streaming services have passed these additional costs to European consumers.
Apple’s Response and Regulatory Attention
Apple disputes these allegations, highlighting its revised commission structure. The company reduced its fee from 30% to 15% for subscriptions active for more than a year, although Spotify and others continue to reference the higher rate. Despite this reduction, claims about high commissions persist.
Regulators have also turned their attention to Apple’s practices, adds NIX Solutions. In March 2024, the European Union fined Apple $2 billion for anti-competitive behavior that limited developers’ ability to inform users about alternative payment methods. This fine occurred even though Apple doesn’t hold a dominant position in the EU’s music streaming market.
Euroconsumer’s Ongoing Battle with Apple
Euroconsumer has a history of legal challenges against Apple. In 2020, they sued over an iOS update that slowed iPhone processors to ensure stability. The following year, they demanded Apple address excessive iPhone battery drain issues in iOS 14.5 and later updates. We’ll keep you updated as the situation develops.