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The EU Commission is preparing to Lay Down new Digital Policies for Europe to Punish Apple and Google

1af x99 cover apple music  spotify bitches again

 

Back in April 2015 Patently Apple posted a report titled "European Regulators Sticking their Nose into Apple's Streaming Music Business before it even gets off the Ground." In August 2015 we posted a follow-up report titled "The EU Commission ends one Apple Music Probe while considering another." In that report we noted that "The European Commission failed to find evidence of collusion among the major music labels and Apple to quash free music streaming services such as those offered by Spotify."

 

Even with that finding, the EU appeared to be continually fishing for anything it could get on Apple that would allow them to open a new probe in an effort to punish U.S. tech companies and give European companies an edge.

 

So the EU Commission asked Spotify and other music streaming services for information pertaining to Apple's mobile App Store. Regulators were seeking information on the restrictions Apple places on apps offered through the store. The U.S. Federal Trade Commission similarly was exploring whether Apple's treatment of rival streaming music apps in the App Store violate antitrust laws. We covered that story back in July 2015 (one and two).

 

On March 29, 2017 we posted a report titled "New Analytical Report on Streaming Music Shows that Apple Music has taken the Lead in Unique Users by a Long Shot." Considering that Spotiy is considering an IPO later in 2017, this wasn't good news for them.

 

So what's Spotifiy's next move? We learn from a new Financial Times times report that "Spotify and a host of European internet businesses have called on Brussels to crack down on what they see as troubling practices by the likes of Apple and Google.

 

Big internet platforms 'can and do abuse their privileged position,' according to a letter signed by the chief executives of Spotify, music streaming rival Deezer and German start-up investor Rocket Internet among others.

 

Although the letter to the European Commission does not cite the Silicon Valley giants by name, it complains that some mobile operating systems, app stores and search engines have evolved from 'gateways' into 'gatekeepers' — effectively hindering rivals from competing with their own services. Apple and Google together control well over 90 per cent of mobile operating systems.

 

The letter comes in the midst of a debate inside the commission around overhauling digital policy, with new proposals due later this year aimed at addressing allegedly unfair contractual clauses enforced by big platforms."

 

In other words, the EU needed to have old grievances against Apple and Google revived so that they could justify their new digital policies that will no doubt come crashing down against Apple and Google in Europe. Even though their probes cleared Apple, they will now ensure to frame the argument according to their new rules to give European companies an edge.

 

It appears that the EU Commission is drunk with power. Jean-Claude Junker, the president of the EU Commission recently made it clear that Europe is growing twice as fast as the U.S. and that English is "losing importance in Europe." So with their new found power is it any wonder that they wanted to start a war with the U.S. on the technology front by striking at Apple first to set a precedent?

 

But that was just the beginning, the Financial Times report added that the EU Commission's new Digital Policy "Options being considered by the EU's executive arm range from sector-specific codes of conduct, to an independent dispute settlement body that would settle rows between big platforms and their often smaller business customers.

 

In the letter, the chief executives write that this mismatch requires 'specific rules guiding the interactions between platforms and their business users.' Normally, a company abusing its dominant market position would be covered by competition law.

 

But such cases take too long and cost too much for smaller internet companies, hence the need for extra regulation, they argue.

 

Common complaints from the companies include not being able to access customer data when they sign up through an app store, as well as big companies promoting their own services over third parties'.

 

Within the European Commission, there is a debate over how to approach the topic, with some calling for a cautious, narrow approach, while others are demanding that Brussels do more to rein in the likes of Google and Apple. Officials are also wary about being perceived as anti-American." Perceived? The EU is clearly anti-American on so many fronts, so this is nothing new.

 

It's clear that the EU Commission is out to force U.S. companies to abide by rules that favor European companies. Instead of a European company creating an OS for Europeans, they'll do the easier thing, force U.S. companies to bow to the world's ever growing economic power, Europe. We'll see how this plays out once the EU makes their new digital policies known later this year.

 

In the end, Spotify couldn't get US Authorities to break Apple as they wanted, so the EU Commission will now come to their rescue. What a joke. The reality is that the EU Commission knew that their new digital policies that are in the works are going to hurt Apple and Google and they needed a front argument to justify their moves. Spotify just happens to conveniently give them the excuse they need to hit U.S. tech companies. Stay tuned.

 

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