FTC could launch a competition probe into App Store’s treatment of Apple Music rivals
The Federal Trade Commission (FTC) is deliberating whether Apple’s control of its App Store and the launch of streaming service Apple Music could hinder competition in the sector.
Sitting in Apple’s App Store in the same category as its bespoke streaming app which launched 30 June is competing services such as Spotify, Jango, Rhapsody, Deezer, Tidal and many more.
Sources fear the Californian tech giant could use its ownership of the App Store to provide it an unfair advantage over competitors in the music streaming bracket.
Furthermore, 30 per cent of purchases in iOS apps are granted to Apple – as an example almost a third of your monthly Spotify subscription would go straight into the coffers of competitor Apple.
Tyler Goldman, chief executive of music streaming firm Deezer in North America, was critical of the charge: "The margin in music is quite small, and the App Store diminishes the margin.
"It will be an issue for the industry going forward. You can either raise your prices and not be competitive with Apple's price, or you can have no margin,"
To combat this charge, the apps - including Spotify – are urging consumers to purchase subscriptions through the web browser instead of in-app in order to dodge granting Apple a slice of the pie.