On Monday, the European Union fined Apple 1.84 billion euros ($2 billion) for limiting competition in music streaming through App Store restrictions.
Key Points
The EU fined Apple 1.84 billion euros ($2 billion) for App Store restrictions that limit competition in music streaming, marking Apple's first penalty for violating EU competition rules.
The fine stems from a complaint by Spotify, accusing Apple of preventing competitors from offering alternative payment options, which the EU deemed unfair trading conditions.
Apple plans to appeal the decision but must comply with the EU's order in the meantime. The case highlights ongoing regulatory efforts to address the tech giant's market practices and ensure consumer choice and fair competition.
This marks Apple's first fine for breaking EU competition rules. The fine includes a 40 million euros base penalty plus an additional 1.8 billion euros as a deterrent.
This decision followed a complaint by Spotify in 2019, accusing Apple of blocking music streaming competitors from offering payment options outside the App Store. The European Commission found Apple's actions unfair and ordered a halt to such practices.
Apple plans to appeal but must pay the fine and follow the EU's directive meanwhile. The fine amounts to 0.5% of Apple's global turnover. Apple criticized the decision, arguing it overlooks the competitive nature of the market and benefits Spotify primarily.
The EU emphasized that Apple's rules not only kept consumers uninformed about their choices but also led to higher prices due to the commission fees charged to developers. While Spotify welcomed the decision, it pointed out ongoing issues beyond music streaming. The fine is significant, but analysts believe Apple can manage it, seeing it as part of broader efforts to challenge Apple's restrictive ecosystem practices.
($1 = 0.9217 euros)
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