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European regulators on Monday slapped Apple with a nearly $2 billion antitrust fine for “abusing” App Store rules related to music streaming providers.
The European Commission said it found that Apple prohibited music streaming app developers from adequately informing iOS users about alternative, cheaper music subscription services.
“For a decade, Apple has abused its dominant market position in distributing music streaming apps through the App Store,” EU antitrust chief Margrethe Vestager said in a statement.
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The regulator said Apple’s actions may have led to iOS users paying “significantly higher” prices for music streaming subscriptions.
EU competition enforcer says Apple’s restrictions amount to unfair trading conditions, a relatively novel argument in antitrust litigation, as Dutch antitrust authorities say dating app providers will It was also used in the judgment against Apple in a lawsuit it filed.
The EU regulator said it added a lump sum of 1.8 billion euros to the base amount as a deterrent to Apple and because a significant portion of the damage caused by Apple’s actions is non-monetary. The basic amount has not been disclosed.
“The primary supporter and largest beneficiary of this decision is Spotify, based in Stockholm, Sweden,” Apple said in a statement. “Spotify has the world’s largest music streaming app and met with the European Commission more than 65 times during this investigation.”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| AAPL | Apple. | 179.66 | -1.09 | -0.60% |
| spot | Spotify Technology SA | 263.75 | +7.34 | +2.86% |
The tech giant also said Spotify has more than 50% share of the European music streaming market, which is more than double that of the streaming service’s closest competitor.
The Swedish company said it does not pay a fee to Apple because it sells subscriptions on its website rather than on Apple’s App Store.
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The European Commission’s decision was prompted by a 2019 complaint by Swedish music streaming service Spotify over the restriction and Apple’s 30% App Store fee.
“Today’s decision marks a critical moment in the fight for a more open internet for consumers,” Spotify said in a statement.
“Apple’s rules prevent Spotify and other music streaming services from sharing various perks with users directly within their apps, including how to upgrade, subscription prices, promotions, discounts, and many other benefits. “We are no longer able to communicate with you,” Spotify added.
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Reuters contributed to this report.
