European executives from some of the world’s most powerful technology companies have slammed Apple for implementing unfair practices on the App store.
Notable executives such as Spotify co-founder Daniel Ek and Deezer CEO Hans-Holger Albrecht have penned a letter to the European Commission calling on it to do more to ensure Apple doesn’t take advantage of its dominant market position.
As well as streaming companies such as Spotify and Deezer leading this pact, a number of games publishers, developers and other companies have also signed the letter to European lawmakers.
According to the Financial Times, they want to see the Commission do more to implement a “level playing field” so that products are marketed fairly on Apple’s commercial platforms – including the App Store.
In the past, smaller companies have criticised larger firms such as Apple and Amazon for abusing their dominant market positions and trying to undercut smaller platforms.
Streaming, of course, is transforming the way people consume music, films and other media. However, smaller companies believe that they’re at a disadvantage in this competitive market and are calling on regulators to make the market fairer.
The European Commission has previously promised to implement new laws and regulations to support smaller firms. But it’s been a few months now, and the signatories believe that there haven’t been significant steps made.
Spotify has allied with Deezer on this issue, and they’re applying pressure on European Commission president Jean-Claude Juncker to take action.
In particular, they’re not happy with the way that Apple makes money off of subscriptions. As noted by Engadget, the firm takes 30 percent from Apple Store subscriptions, leaving smaller firms out of pocket.
Apple has tried to appease such concerns by changing this fee to 15 percent after the first year, but Spotify and co still deem the charge damaging to companies. There’s also the fact that Apple has tried to hold back Spotify’s app updates in the past.
“These obligations should include but go beyond mere transparency requirements, which alone will not ensure platforms act as gateways rather than become gatekeepers to the digital economy,” says the letter.
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