FTC said to be ramping up its investigation against Apple

The Federal Trade Commission (FTC)is reportedly stepping up its look into Apple’s App Store rules. The rules have recently come under fire, particularly from streaming music services who feel that they shouldn’t have to pay Apple a 30% cut of subscription fees, especially when much of their content isn’t hosted on the App Store. Now the FTC is said to be issuing subpoenas to music streaming services.

From The Verge:

The FTC’s inquiries have picked up over the recent weeks, on the heels of its initial investigation into whether Apple pressured labels to kill Spotify’s free streaming tier. Sources with direct knowledge of the matter tell The Verge that the FTC has already issued subpoenas to music streaming services as it gathers more information to determine whether Apple’s App Store rules are anticompetitive.

In response to the rules, many streaming companies, including Spotify, Rdio, and Rhapsody, charge $12.99 for their standard subscription purchased through iOS, where normally they would cost $9.99. These companies feel that, especially since Apple has now launched Apple Music, Apple has an unfair advantage in the music streaming arena, where it can charge lower prices without a loss in revenue.

Source: The Verge

Source: iMore

About Bhavesh Rabari

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