Canada finds Apple’s carrier deals don’t hurt competition

France may think Apple is up to no good with its carrier deals for the iPhone, but you won’t hear similar gripes from Canada. The country’s Competition Bureau has determined that there isn’t “sufficient evidence” to show that Apple had illegally strong-armed carriers into deals that gave it preferred treatment. While there’s no question that the iPhone is a “must-have” for carriers, the regulator says, the terms only have a minor effect at most — there’s plenty of competition, and ditching Apple’s agreements wouldn’t significantly change the playing field.

The investigation started in 2014 after the Bureau received info hinting that Apple was placing a heavy burden on providers. As in other countries, there were concerns that carriers had to buy a minimum number of iPhones, agree to up-front retail subsidies and give Apple a “most favored nation” clause that prevented rivals from getting better treatment. What evidence exists suggests that carriers could easily “mitigate” these terms, according to the decision.

From first-hand experience, the findings appear to hold up. The Canadian market is big on the iPhone, but you’re just as likely to see carriers push the latest Samsung phone or the Google Pixel line. You’ll frequently see other flagship devices get more prominent treatment, or discounts that aren’t offered for Apple’s handsets. While this doesn’t rule out the possibility of overly strict deals, it’s clear that there’s no international consensus on Apple’s competitive stance — it largely depends on individual markets.

Via: AppleInsider

Source: Competition Bureau

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Spotify: Apple is holding up app approval to squash competition

How do you catch up with the biggest music streaming service? Well, not approving app updates is one tactic, and Spotify says Apple is doing just that. The streaming service sent a letter to Apple’s legal counsel this week claiming that the company is rejecting an update to Spotify’s iOS app and it’s “causing grave harm” to users by doing so. The letter explains that Apple won’t approve the new version because Spotify doesn’t use the company’s billing method for in-app purchases and subscription services. Apple announced an changes to app subscriptions in iTunes just before this month’s WWDC.

Like other apps, Spotify had been getting customers to foot the bill for Apple’s App Store billing fees by charging an extra $ 3 a month. It recently launched a promotion for the second time that gave new users three months of service for a dollar, if they signed up on the web. As you can imagine, that didn’t make Apple too happy, and the company reportedly threatened to pull the app entirely unless Spotify stopped pushing the deal for iPhone owners. It complied with the request, but it also nixed the iTunes billing option in the iOS version which lead to the current dispute.

Sure, Spotify users can still sign up through its website to avoid paying the extra money every month. However, charging extra to pay through iTunes puts the streaming service at a disadvantage when it comes to competing with Apple Music. Spotify still has double the paying customers as Apple, but with exclusives and things like Beats1, the iPhone maker continues to gain ground. We’ve reached out to both Apple and Spotify on the matter and we’ll update this post when and if we hear back.

Source: Recode

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