Spotify CEO Daniel Ek signed a letter along with other European technology leaders to the European Commission. Notably, the letter claims that some internet services abuse their power. It is to be added their market is highly competitive. Two of their giant competitors are Apple and Google. The rivals of Apple and Google think they are abusing their power and scale. In the letter, they did not mention Google and Apple names. Surely indicated these giant companies in different lines.
The Financial Times first covered the news on Friday. After that Business insider posted the whole letter on Monday.
Spotify is a music streaming service company in Europe. They have brought the issue into light in the first place. The chief executives who signed the letter are from three European tech firms. The companies are Spotify, Deezer, and the German firm Rocket Internet. They wrote the letter to the European Union. Their complaint was that big internet firms abuse their privileged position when it comes to mobile.
The CEO wrote “Our collective experience is that where online platforms have a strong incentive to turn into gatekeepers because of their dual role, instead of maximizing consumer welfare, they can and do abuse their privileged position”
Not to mention the European tech firms referenced mobile operating systems, app stores, search engines, marketplaces and social media services. They mentioned them as examples of platforms with which their issues are related.
In one part of the letter, the CEOs said examples of platforms turning into gatekeepers include them “restricting access to data or interaction with consumers, biased ranking and search results to lack of clarity, imbalanced terms and conditions and preference of their own vertically integrated services.”
Google is ruling the search market in Europe. Moreover, its Android mobile operating system along with Apple’s iOS are dominating the market. Their profit is now over 90 percent of the mobile market. It is clear who the chief executives are pointing out.
The executives sent the letter commission for another purpose. So the Digital Single Market can review it.