A PYMNTS Company

Deezer Joins Spotify in Applauding EU’s Antitrust Fine on Apple, Calls for Scrutiny on DMA

By  |  March 10, 2024

Streaming music service Deezer has voiced its support for the European Union’s decision to impose a hefty €1.84 billion fine on tech giant Apple for violating antitrust regulations within the streaming music market. In a statement released today, Deezer’s CEO Jeronimo Folgueira cautiously praised the EU’s actions while simultaneously calling for a thorough examination of Apple’s response to the Digital Markets Act (DMA), labeling it as “deceptive” and an “attempt to bypass European regulations.”

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The European Commission’s move to penalize Apple for anti-competitive practices has received positive recognition from Deezer. Folgueira emphasized, “It’s very positive to see that the EU is taking action against Apple and is showing readiness to firmly sanction anti-competitive practices.”

    However, Deezer is urging the EU Commission to closely evaluate Apple’s compliance with the DMA in light of the recent fine. Folgueira stressed that Apple’s proposed DMA terms do not adequately align with the objectives of the regulation.

    Related: Spotify Applauds EU’s Fine on Apple for Anticompetitive Practices

    Apple’s DMA rules, unveiled in January, were intended to provide a framework for app developers to distribute their apps through alternative marketplaces. However, Deezer and other signatories of an open letter to the European Commission argue that Apple’s implementation of the DMA is far from satisfactory. Under the new rules, developers opting for alternative app distribution channels outside of Apple’s App Store face a new “Core Technology Fee,” amounting to €0.50 for each first annual app install per year over a 1 million threshold.

    Deezer, along with companies like Epic Games, Spotify, and others, contends that rather than fostering fair competition, Apple’s new fee structure perpetuates its dominance by imposing excessive costs on developers.

    In a blog post updated to reflect the recent fine imposed on Apple, Deezer reiterated its stance, denouncing Apple’s DMA rules as an attempt to circumvent regulations and labeling the Core Technology Fee as “excessive” and “prohibitively expensive.”

    Despite Apple’s efforts to entice developers with reduced commissions, few have publicly expressed willingness to adopt the new terms, echoing concerns raised by Deezer and others regarding the fairness and feasibility of Apple’s DMA provisions.

    Source: UK Movies Yahoo