The music streaming company also sent us this statement, attributed to its head of global affairs and general counsel, Horacio Gutierrez – in which he suggests that the cartel`s allegations will have “far-reaching implications”: from the speed at which large tech companies such as Google, Apple, Amazon, Facebook and Microsoft are being sued in various individual and class actions in different jurisdictions, One thing is clear: the decade 2021-2030 will not be very favorable to these conglomerates; On the contrary, it will worsen the situation of the respective in-house legal departments of these law firms. These multinational conglomerates occupy the top five positions among the most valuable and prestigious companies in the world and are therefore subject to the constant vigilance of antitrust authorities. It is easy to interpret that these companies are often pursued by companies that together form a vertical link in the production chain. The recent Spotify-Apple case is a prime example. This isn`t the first time a global tech company has been in the spotlight of competitive sanctions, but it`s certain that authorities are expanding their reach and reach to capture as many companies as possible. The Cupertino-based company will, of course, have the opportunity to provide a formal response to the allegations. Since Apple is unlikely to admit wrongdoing, a legal battle seems to be following, so the chaos will drag on for a while. While this bill is unlikely to succeed, a wave of antitrust reform bills will be introduced as U.S. lawmakers on both sides of the aisle grapple with how to reduce Big Tech to a pro-competitive size.
Over the past year or so, the European Commission has received several complaints against Apple from various stakeholders, including Epic Games, Telegram, ZAW (Deutsche Werbegesellschaft), etc. In the App Store case (the present case itself), since June 2020, the Commission has started collecting evidence and evidence that could clearly indicate whether Apple is guilty of the allegations against it. The future looks a bit bleak for Apple as antitrust regulators in various jurisdictions, especially European jurisdictions, tighten their grip on them, which will certainly hurt Apple to a far greater extent than we can imagine. Margrethe Vestager, Executive Vice-President of the European Commission, tweeted from her official profile, informing her supporters and antitrust enthusiasts about the Commission`s latest initiative on the matter. She also gave an overview of various upcoming lawsuits related to audiobooks and e-books that are pending and will soon be investigated against Apple. Quote: Apurv Umredkar, The European Commission`s Stance on the Recent Spotify-Apple Feud, JURIST – Professional Commentary, June 10, 2021, www.jurist.org/commentary/2021/06/apurv-umredkar-european-commission-on-spotify-apple-feud/. But this agreement does not appease either company. They push their legal campaigns for several reasons: both want to be much more direct about how they tell clients they can go elsewhere by telling them in the app, for example. Apple is one of the few companies to develop products based on a closed ecosystem. Everything related to software, apps, operating system, browsers, and other services on Apple devices is made exclusively by Apple itself.
There is hardly any outdoor-made part that Apple uses in the supply of its products and devices. This exclusivity criterion is another reason why Apple may enforce its arbitrary terms and restrictions, and why Apple users are loyal to this brand. Apple users often stick to their Apple devices because Apple products are not available on other platforms. Therefore, they only have Apple`s App Store to access the app services, and neither Apple users nor app developers have any choice but Apple`s App Store to use the services. As a result, Apple is accused of abusing its dominant position. So far, Apple has been given the 12-week deadline to respond with their version of the story. If the allegations against Apple alleged in this case are substantiated, a fine can be imposed for up to 10% of its annual global sales. As part of their rivalry, the two entities can be clearly seen at the forefront of the confrontation in the public space of opinion, outside of the ongoing high-stakes litigation. Whether it`s speaking directly to them on their respective blogs, publishing clues, or clarifying by providing their side of the story, both companies have continued the struggle to express their bitterness and continue to do so to this day. Spotify and Epic Games continue to push for their legal campaigns. Plus, don`t expect regulators who scrutinize Big Tech to relax. The European Commission`s antitrust division recently raised objections to Apple Inc.`s misconduct regarding the App Store`s policies and practices, accusing the tech giant of violating antitrust rules by distorting competition in the music streaming market.
This preliminary view is the result of a 10-month investigation opened by the Commission following various complaints from Spotify over a period of time. Some speculate that the complaint was filed in the European jurisdiction because the rules it contains could prove to be more favorable to Spotify than any other antitrust jurisdiction. The official antitrust investigation began in June last year. Recently, the UK Competition and Markets Authority opened investigations into the same case.