Europe News

Vestager vs. Cook dinner: New Apple fees reignite previous standoff



It’s private. Once more. 

Lower than a yr after her courtroom defeat over a €13 billion case in opposition to Apple, the EU’s high antitrust enforcer Margrethe Vestager is as soon as once more taking goal on the iPhone maker.

This time, Vestager is concentrating on one among CEO Tim Cook dinner’s crown jewels: Apple’s App Retailer.

In fees introduced on Friday, the Danish politician accused the iPhone maker of abusing a dominant place to distort competitors within the music streaming market, handing an early win to the chief complainant within the case, Sweden-based Spotify.

The case marks a return to heart stage for Vestager, who has suffered a string of defeats in EU courts on a few of her flagship circumstances in opposition to Massive Tech, together with Apple.

But it surely’s additionally set to revive a tense dynamic between the European enforcer and Cook dinner, which famously exploded into public acrimony in 2016 when she introduced her choice in opposition to Apple within the tax case.

“It’s maddening, it’s disappointing, it’s clear that this comes from a political place, it has no foundation actually or legislation,” Cook dinner mentioned on the time. “It’s whole political crap.” (He was to be vindicated when the bloc’s high courtroom overturned the tax choice final yr. Vestager’s workplace is interesting the ruling.)

This time round, Cook dinner has prevented commenting publicly on the Fee’s new case. However amid a flaming public relations battle between Apple and different tech firms, specifically Fb, over modifications to its App Retailer, the most recent fees are set to crank up the temperature as soon as once more.

Certainly, Vestager’s new case takes goal at a key income for Apple — the way it fees app builders to be featured in its App Retailer, its second-most profitable enterprise after promoting iPhones.

“Our preliminary discovering is that Apple is a gatekeeper to customers of iPhones and iPads through the App Retailer,” Vestager mentioned on Friday at a information convention unveiling the fees. “Apple deprives customers of cheaper music-streaming decisions and distorts competitors.”

Disputed practices embrace charging excessive fee charges on every transaction of rivals within the App Retailer and stopping rivals from informing clients of different subscription choices.

Apple now has the chance to answer the antitrust fees, which may result in settlement negotiations or the Fee pushing forward with a tremendous and an order to alter practices.

However Vestager isn’t able to relaxation with only one case.

The Fee final yr concurrently launched two different investigations into Apple’s App Retailer — one regarding e-books and audiobooks, the opposite on competing apps in Video games and iCloud. Individually, it launched an investigation into Apple Pay.

“This isn’t the final case that we’ll have in terms of the App Retailer,” Vestager instructed reporters on Friday.

For Apple the declare by Spotify — one among Europe’s most profitable, if not solely, streaming platforms — that it was harmed by the App Retailer insurance policies doesn’t sq. with the service’s reputation.

“On the core of this case is Spotify’s demand they need to be capable to promote different offers on their iOS app, a follow that no retailer within the world permits,” an Apple spokesperson mentioned.

“As soon as once more, they need all the advantages of the App Retailer however don’t assume they need to must pay something for that. The Fee’s argument on Spotify’s behalf is the alternative of honest competitors.”

Cook dinner has to date prevented remark. For now.

Simon Van Dorpe contributed reporting.

Need extra evaluation from POLITICO? POLITICO Professional is our premium intelligence service for professionals. From monetary providers to commerce, know-how, cybersecurity and extra, Professional delivers actual time intelligence, deep perception and breaking scoops you should hold one step forward. E-mail [email protected] to request a complimentary trial.





Supply hyperlink