Several European tech companies have reached out to EU regulators in hopes to get help with anti-competitive practices from companies like Amazon and Apple. According to a report from Financial Times, “Spotify co-founder Daniel Ek and Deezer chief executive Hans-Holger Albrecht called on Brussels to ensure ‘a level playing field’ by reining in platforms that are ‘regularly abusing their advantaged position’.”
Spotify and Deezer don’t like the fact that Apple takes a 30 percent cut off subscription fees when people sign up for their services through Apple’s App Store, also taking into consideration that Apple has its own music service called Apple Music. This essentially means that not only is Apple making full money from Apple Music, but it’s also making a dent into competitors’ finances through the sales they get from the App Store.
The European Commission is working to prepare new regulations that will hep govern big tech companies and how they interact with developers and merchants that are dependent on their platforms for business and exposure. Previously, we’ve seen Google go through this where Google was fined a record €2.4 billion for demoting rivals and unfairly promoting its own services to consumers. Premier music services in Europe are hoping for lawmakers in Brussels to help fight against big tech companies that are abusing their market position.
The letter sent to the commission asked that any new rules “go beyond mere transparency requirements, which alone will not ensure platforms act as gateways rather than become gatekeepers to the digital economy.” We’ll see how European lawmakers respond to these requests as they prepare new rules.
