Tag: dma

  • Spotify urges the EU to reign in Apple’s App Store monopoly

    Spotify urges the EU to reign in Apple’s App Store monopoly

    As many of you probably know, there’s always heated competition between tech companies. And sometimes, a company is bigger than another… in one way or another. Battles between competitors are not a rarity in the tech world. One such battle has been undertaken by Spotify, which is, let’s say, unhappy with Apple Music and has taken it to file an antitrust case against Cupertino. And now, 9to5Mac reports things are getting a little heated.

    Basically, Spotify is alleging Apple is competing with it via Apple Music in an unfair manner. Spotify is stating that Apple can offer subscriptions within Apple Music with no penalty, but Spotify needs to pay 30% to Apple for doing the same (or 15% from year two).

    Back in 2019, Spotify filed an antitrust complaint against Cupertino in Europe. Since then, the European Commission has reached a preliminary conclusion siding with Spotify but a final decision has not been reached yet.Now, Spotify has sent an open letter (backed by 7 other companies) to the Executive Vice President of the European Commission, Margrethe Vestager. The companies that backed the music-streaming platforms represent digital organizations for audio streaming, web software, communications, publishing, and marketplaces.

    Here’s the list of the companies that signed the open letter:

    • Basecamp
    • Deezer
    • Proton
    • Schibsted
    • Spotify
    • European Publishers Council
    • France Digitale
    • News Media Europ

    Read the full open letter here.

    In the letter, the companies request “swift and decisive action” to be taken from the European Commission against “anti-competitive and unfair practices by certain global digital gatekeepers” – namely Apple. The letter goes on to indicate that Apple has been imposing unfair restrictions on businesses. Additionally, the letter states those alleged anti-competitive practices are harming innovation, European consumers, and the development of apps and services.

    The letter also underlines that a decision has to be reached quickly, as “every day that passes is a loss for innovation and for the welfare of European consumers.”

    In the fall of last year, Europe’s Digital Markets Act (DMA) entered into force, after being adopted in the summer. The DMA is addressing App Store monopoly, third-party app payments, and cross-OS support for iMessage. Spotify’s letter signifies that enforcement of the new legislation is needed against Apple and underlines that any attempts to circumvent the new legislation by “misleading and vague grounds of privacy and security” should be resisted.
    All in all, the letter urges the European Commission to make a decision on the case against Apple. It will be interesting to see whether or not the EC accelerates its decision making and what results from this battle.
  • EU wants to force iMessage and WhatsApp to be able to chat with smaller chat apps

    EU wants to force iMessage and WhatsApp to be able to chat with smaller chat apps

    In the last couple of years, lawmakers, especially in the European Union, have been scrutinizing big tech companies. The latest proposal this time is related to instant messaging apps like iMessage, WhatsApp, and Facebook Messenger. The EU wants to make those apps forced to send and receive messages, calls, videos, and files from smaller chat apps.

    As you can see, this is a part of the European Union’s attempts to give space to competition in the tech world, as the EU Parliament has several antitrust proposals going on right now that address this issue. This rule is actually a part of a larger proposal for legislation that is called the Digital Markets Act (DMA) that we’ve reported on previously.

    Interestingly enough, the DMA wants major messaging platforms (like the ones we listed above) to allow their services to work with smaller messaging platforms – pretty much like Google Messages and iMessage can receive and send texts between Android and iPhone users.

    This rule, if the DMA gets accepted and turned into law, would apply to any company that sports at least 45 million monthly active users, and 10,000 annually active corporate users. Of course, this is only going to apply in Europe.

    And, when we’re talking about legislation, it’s also key to address what happens to companies that choose not to comply with it (if it becomes law). Pretty much, companies like Apple and Meta, among other tech giants, could be fined up to 10% of their global annual turnover if they fail to comply. If they continue to not comply, the fine can get up to a staggering 20% for repeated violations.

    Okay, that’s all fine but you may be asking yourself how can an interoperable platform like that address the issue of security. Well, the European Union thinks that this can be done safely, at least so does Andreas Schwab, the European Parliament’s Rapporteur for the file believes.

    He stated that the Parliament had always envisioned interoperability for messaging. He adds that if the Telecoms Regulators say that it is not possible to deliver end-to-end encrypted group chats within a certain time frame, it will come as soon as it becomes possible. Basically, the EU is willing to wait until end-to-end encryption is put in place to ensure the security of different messaging apps when they exchange messages, photos, videos, and files.

    But, as many of you may know, the DMA is not only about messaging. It would also force platforms to give users choice in terms of web browsers, search engines, and even virtual assistants that they use on their devices.

    So far, the DMA has not been made final yet. However, it is progressing to becoming law. The act is now awaiting approval for the legal text by the European Parliament and Council, and so far, there is no concrete timeline for when the messaging changes we mentioned above would occur.

    In 2020, the EU Parliament invited tech giants such as Apple and Google to participate in talks about the Digital Markets Act.

    All in all, the DMA aims to fight against anti-competitive practices that limit innovation and aims to give smaller developers more chances in competing with the big boys. Another thing that the legislation suggests is for Apple to allow alternate app stores on iPhones and iPads, again, for the sake of fair competition.

    Recently, there were expectations that the DMA will make it into reality by the end of March. We might be seeing what will happen and if the proposal will become law pretty soon.