Apple Inc. v Metropage Pty Ltd

Apple Inc. and Metropage Pty Ltd were parties to proceedings before the Australian Competition Tribunal concerning an application for authorisation of a proposed exclusive dealing arrangement. Apple sought to offer its Apple Music service to customers of its iPhones, iPads and Macs on a subscription basis, with the condition that these customers would receive a free three-month trial of the service. This offer was to be made exclusively to customers who purchased a new Apple device. Metropage Pty Ltd, a competitor in the music streaming market, opposed this application.

The central legal issue before the Tribunal was whether the proposed exclusive dealing arrangement between Apple and its device purchasers was likely to result in a substantial lessening of competition in the relevant market, contrary to section 96(5) of the *Competition and Consumer Act 2010* (Cth). This required the Tribunal to consider the nature of the market for music streaming services, the potential impact of the exclusive offer on existing and potential competitors, and whether the benefits of the arrangement outweighed any potential detriments to competition.

The Tribunal considered the evidence presented by both parties regarding the competitive landscape of the music streaming market. It noted that the market was already highly competitive, with numerous established players offering similar services. The Tribunal reasoned that the proposed three-month free trial, while potentially attractive to consumers, was unlikely to create a substantial barrier to entry or expansion for competing music streaming services. The Tribunal concluded that the offer was a promotional tool rather than a mechanism that would significantly restrict competition, and therefore, it was not likely to result in a substantial lessening of competition.

The Australian Competition Tribunal granted authorisation for the proposed exclusive dealing arrangement.