Apple to Be Fined Over $500 Million in EU Music Streaming Probe

[CapitalIdea]

VW wants a chat with you

The only reason VW got hammered was because they literally falsified scientific measuring instruments and risked their entire worldwide business.

 

[MilaM]

In the EU, "competition law" simply means "we failed to cultivate business that could compete on the merits, so we're going to try to hobble their competition through selective legislation and fines."

This is such a childish argument. I don't think you know what you are talking about.

 

[Pezimak]

Not if the EU is going to cost them 20+% of their global market income. Which is something DMA fines will actually be like. The EU has become a liability for Apple. And sure some shareholders might be against it, but if Apple needs to do it. They will leave the EU, or make their products so expensive in the EU to cover the fines.

20% 🤣🤣😂🤣🤡 20% of Apples EU turnover would equate to around 18 billion dollars! Last I checked Apple wasn't being fined that much. Oh and lets not forget cushy tax arrangement Apple has with Ireland and Luxembourg.

I can guarantee if Apple pulled out the EU market over a fine you would wake up to find Cook and the board replaced, and Apple back in the EU with a grovelling apology the following day. Courtesy of the share holders OR, you would find their market cap plummet and Apple cease to exist not long after and with several legal actions taken against them from share holders, hell
maybe Elon will buy them for pennies then?

 

[Timo_Existencia]

This is such a childish argument. I don't think you know what you are talking about.

Got it. Again, you're comparing Microsoft when it was a real monopoly to Apple who is nowhere near a monopoly.

And you're suggesting that Apple, who provides Spotify with a free platform to download millions of their apps on Apple devices, providing Spotify with a lucrative market into which they can sell their service to qualified buyers, is a monopoly relative to Spotify? Again, Spotify has 30.5% of the streaming marketshare, Apple only has 13.7%.

I think I understand the difference between Apple and Microsoft quite well.

 

[I7guy]

But are they, pls illustrate with data to back this up.
Whatever your findings though, the rules must still be observed because let's be honest, (and I'm going to go a little extreme),if I had every qualification that made me the best objective candidate for US President, and even if I'd been living there since before Kindergarten - the rules are slanted against anyone that's not a home player.
That's even IF, they are and you still need to prove that as you made the claim.

The rules to be a us president are in the constitution. There is no going to court if you do t like the rules. This fine will wind its way up through court.

 

[laptech]

So, for $99/year, Spotify is given a platform to host their app, and provide millions of downloads of their app into a very lucrative marketplace with qualified buyers. That's essentially free to Spotify. It certainly costs Apple quite a bit more to build, maintain and host the marketplace than Spotify is paying to Apple.

Spotify, in large part likely due to this free platform that Apple provides, has managed to gain 30.5% of the streaming music business, nearly tripling Apple's marketshare of 13.7%.

EU citizens, who seem incapable of managing the overly burdensome task of managing their Spotify subscription in a web browser (also available on the iPhone), are crying that this arrangement is somehow unfair to Spotify. Which boggles the mind—Apple is giving a lucrative platform to Spotify for free. And Spotify is crying about it.

Apple's hosting fee's for the app store are Apple's problem, not anyone else's. Apple set out what it costs to host an app on their app store and that cost is $99 per year. If you think it costs Apple more to build, maintain and host the marketplace than Spotify is paying Apple then again, that is Apple's problem to address, not Spotify. You also conveniently forget that any music purchase made within the Spotify app gives Apple 30% of that purchase. How convenient then is it that Apple is making millions of $$$ a month from Spotify and you neglect to mention this. Apple fan's can never be objective can they.

 

[Pezimak]

I agree, I am a shareholder, and it will not hurt people. The consumers in the EU will be hurt.

You actually wouldn't mind permanently losing 25% of your return on your investment? Strange world indeed.

 

[RemedyRabbit]

Do you really think this is going to hurt Apple's shareholders? No. This will hurt Apple consumers within the EU, when Apple passes on this fine to the user's with increased prices for hardware.

And for the people laughing at my post: they will. They have done so before, and they will do so in the future. If you live in the EU (like me) you will pay for this.

Any increase in prices coupled with the bad press of them breaking the law will likely have a negative effect on their sales anyway, which will absolutely serve them right.

Important to remember that Apple are not on your side, like any huge global mega corp they simply want as much money as they can possibly get.

I’ve been a big fan of Apple for a very long time and I use their products daily, but I wouldn’t leap to take their side over democratically elected politicians. As much as politics is flawed and no doubt corruption exists there are certainly many many people around government whose sole purpose is to make life better for everyday people. Whether you agree with their methods or not, that’s what they’re trying to do. Apple’s sole purpose is making money for shareholders.

 

[CapitalIdea]

Why proctect Apple? They should be consumer friendly and stick to the rules.

When they stick to the rules, you complain and call it “malicious compliance.” When they create a product that has a very specific build and an ecosystem that is highly curated and people decide with their wallets to reward them more than others you people claim it is not “consumer friendly.” Buy something else, instead of attacking Apple for creating things that other people actually want as if you are the center of the universe.

 

[Timo_Existencia]

Apple's hosting fee's for the app store are Apple's problem, not anyone else's. Apple set out what it costs to host an app on their app store and that cost is $99 per year. If you think it costs Apple more to build, maintain and host the marketplace than Spotify is paying Apple then again, that is Apple's problem to address, not Spotify. You also conveniently forget that any music purchase made within the Spotify app gives Apple 30% of that purchase. How convenient then is it that Apple is making millions of $$$ a month from Spotify and you neglect to mention this. Apple fan's can never be objective can they.

Ummmm...Spotify doesn't pay Apple anything for sales, because Spotify has chosen to not do sales through their app.

So no, Apple is not earning $$$ millions per month from Spotify. Go back and do your research.

Apple loses money because of Spotify.

 

[I7guy]

Or, maybe Apple is the new Microsoft.

Or maybe the EU is the new socialist state. Either or.

20% 🤣🤣😂🤣🤡 20% of Apples EU turnover would equate to around 18 billion dollars! Last I checked Apple wasn't being fined that much. Oh and let’s not forget cushy tax arrangement Apple has with Ireland and Luxembourg.

If you add the word legal to the above it would be more clear.

I can guarantee if Apple pulled out the EU market over a fine you would wake up to find Cook and the board replaced,

Or apple stock would skyrocket and Tim would get a big fat bonus.

and Apple back in the EU with a grovelling apology the following day. Courtesy of the share holders OR, you would find their market cap plummet and Apple cease to exist not long after and with several legal actions taken against them from share holders, hell
maybe Elon will buy them for pennies then?

While we’re on hyperbole, maybe the EU citizenry wiuld adopt android as the gold standard, and then google would really be regulated.

 

[MilaM]

Again, you're comparing Microsoft when it was a real monopoly to Apple who is nowhere near a monopoly.

It wasn't the market share as such, that got Microsoft into trouble. That's why your argument with 30% does not make sense. Anticompetitive practices will bring you trouble.

 

[Pezimak]

Ummm....you think these fees and taxes are free to you? Apple will earn the money it needs to earn in order to stay healthy in the EU market. Which means consumers will pay in a different way.

You speak of this marketshare as though it can be mined in an unlimited way, as though the EU can keep looking for new ways to extract money from Apple and there will be no cost.

Go ask businesses in the EU why they aren't competing on the global stage in these markets. You may be surprised by their answer.

I think you missed that my reply was to those on here claiming Apple should just leave the EU market entirely. But if you support that then more power to you.

 

[laptech]

Ummmm...Spotify doesn't pay Apple anything for sales, because Spotify has chosen to not do sales through their app.

So no, Apple is not earning $$$ millions per month from Spotify. Go back and do your research.

Apple loses money because of Spotify.

Well they used to, last time i used Spotify I could purchase a song via their app. Granted it has been a very long time since I last used it to purchase a song/album.

 

[Pezimak]

Or maybe the EU is the new socialist state. Either or.

If you add the word legal to the above it would be more clear.

Or apple stock would skyrocket and Tim would get a big fat bonus.

While we’re on hyperbole, maybe the EU citizenry wiuld adopt android as the gold standard, and then google would really be regulated.

Interesting, Americas way to do business would be to permanently ditch 25% of global annual turnover and award the CEO for it. That's a fun alternate reality you've got in your there. Are you wearing your Vision Pro by any chance?
As for hyperbole, I'm not the one stating Apple should leave the EU. If it wants to great, it will be a lesser business of itself as a result and be far less competitive globally.

The entire concept is as absurd as those on here promoting it. Handing a market worth billions a year to your competition. And Goode has been heavily fined by the EU over the years yet still remain in business there, and I don't recall their fanbase calling for them to leave the EU either, could be wrong though.

 

[Timo_Existencia]

I think you missed that my reply was to those on here claiming Apple should just leave the EU market entirely. But if you support that then more power to you.

I do think Apple should leave the EU. They likely won't, but they're also showing that they won't just roll over to extortion. So, it will be an interesting time ahead.

 

[MilaM]

I do think Apple should leave the EU. They likely won't, but they're also showing that they won't just roll over to extortion. So, it will be an interesting time ahead.

I will never understand why some people will defend a for-profit corporation so fiercly. What do you get out of it?

 

[I7guy]

Interesting, Americas way to do business would be to permanently ditch 25% of global annual turnover and award the CEO for it. That's a fun alternate reality you've got in your there. Are you wearing your Vision Pro by any chance?
As for hyperbole, I'm not the one staring Apple should leave the EU. If it wants to great, it will be a lesser business of itself as a result and far less competitive globally.

Facebook already threatened as such. And it may not be immediate but the amount of innovation that trickles down to the EU may start dwindling.

As far as our future, people have laughed at apple for all sorts of things. VP OG may not be the future, but you can bet apple has done its homework. Guarantee it won’t be another AirPower.

 

[I7guy]

I will never understand why some people will defend a corporation so fiercly. What do you get out of it?

I do not understand why people want to rip incorporation so fiercely, when the greatest way to screw them is not to buy their products.

 

[MilaM]

Facebook already threatened as such. And it may not be immediate but the amount of innovation that trickles down to the EU may start dwindling.

Have you ever looked at the BOM for an iPhone? How much of it is actually produced in California? They even buy some components in socialist Europe. Unbelieveable, I know.

 

[Timo_Existencia]

I will never understand why some people will defend a corporation so fiercly. What do you get out of it?

Are you serious? You're defending a legislative scheme from a powerful government entity that has created such a business unfriendly environment that the EU is not a serious player in the digital marketplace. That is the direct harm the EU is doing to consumers.

I support Apple because they provide me incredible tools that have fueled my business for the entirety of my career. It's actually not a difficult concept to understand. I make money on Apple products. I am more creative and productive in my life because of Apple products. Why would I NOT support such a company?

 

[I7guy]

Have you ever looked at the BOM for an iPhone? How much of it is actually produced in California? They even buy some components in socialist Europe. Unbelieveable, I know.

I didnt say the innovation in the EU was zero. As a general statement, why would the EU be considered a business friendly climate. Just don’t be a big company I guess. Don’t pay a lot taxes, don’t employ a lot of people. Characteristics all governments are looking for. /s

 

[Pezimak]

I will never understand why some people will defend a for-profit corporation so fiercly. What do you get out of it?

It's the different mindset, Americans tend to be capitalism first and foremost and always no matter what. Protect that big business. Seemingly work none stop with few national holidays compared to other nations. Other nations lean towards protecting the people and consumer. You can argue over who's right and wrong but the US is currently the wealthiest nation, although you could how they got there too.

EDIT, you could also say Americans have more freedom and a more freedom attitude, Europe is a bit more controlled. If you take a high level view of human history. Just mankind (and women) going in different directions to ensure survival of the species, if we ever get off this rock even more so.

 

[wanha]

This is getting ridiculous. What else does the EU do besides go after apple?

Tell me you get your news exclusively from MacRumors without telling me where you get your news from

 

[DaPhox]

It wasn't the market share as such, that got Microsoft into trouble. That's why your argument with 30% does not make sense. Anticompetitive practices will bring you trouble.

Which are those practises?