European Union regulators on Monday slapped Apple with a hefty 1.8 billion euros ($2 billion) antitrust fine for “abusing its dominant position” in the music streaming industry through its App Store practices. .
The European Commission has ruled that Apple unlawfully restricts music app developers from promoting cheaper ways to subscribe to streaming services outside of the App Store. On the App Store, the Cupertino, California-based company is known for charging up to 30% fees for downloads.
This huge fine is the first imposed by the European Union. The commission investigated Apple about five years ago following a complaint filed by streaming giant Spotify.
“Apple’s actions, which have been going on for almost a decade, may have led many iOS users to pay significantly higher prices for music streaming subscriptions. The same service is available on the Apple App Store. ” the European Commission said in a statement.
Officials said Apple’s actions were specifically found to violate the European Union’s “anti-steering provisions,” which are “unlawful under EU antitrust rules.”
The European Commission said the fine was higher than most experts expected, but was judged to be “proportional to Apple’s global revenues and necessary to achieve deterrence.”
The commission ordered Apple to stop restricting music streaming apps and refrain from implementing similar practices in the future.
Apple shares fell nearly 2% after the opening bell.
The company said it intended to appeal the decision, a process likely to take several years, and that the European Commission’s action “has not revealed any credible evidence of consumer harm and that , it ignores the realities of a highly competitive and highly competitive market.” Growing rapidly. “
“Apple has been part of Europe for more than 40 years and today supports more than 2.5 million jobs across the continent,” the company said. said in a long blog post.. “We’ve fostered competition and innovation at every turn, helping markets thrive, and the App Store is an important part of that story.”
“We therefore respect the European Commission, but the facts simply do not support this decision,” Apple added.
Spotify, which has been harshly critical of Apple’s App Store practices, has been asked by regulators to take “next steps” that it “hopes will clearly and decisively address Apple’s longstanding unfair practices.” Nevertheless, it praised the European Commission’s decision.
“This decision sends a powerful message: No company, even a monopoly like Apple, can abuse its power to control how other companies interact with their customers. “No,” Spotify said in a statement.
The fines were announced as Apple and other tech giants scramble to comply with the European Union’s comprehensive digital marketplace app ahead of a March 7 deadline.
The law focuses on six “gatekeeper” companies: Google parent company Alphabet, Amazon, Apple, TikTok parent company ByteDance, Facebook and Instagram parent company Meta, and Microsoft, giving small and medium-sized businesses equal rights. The aim is to ensure fair competitive conditions.
