The European Union (EU) levied a €1.8 billion (roughly $1.9 billion) fine against Apple on Monday for breaching antitrust regulations. The bloc accused Apple of hindering music streaming services from informing users about subscription options outside the App Store.
The move follows a complaint filed by Spotify, the Swedish music streaming giant, in 2019. The EU’s investigation initially focused broadly on Apple’s practices, but later narrowed down to Apple’s restrictions on app developers informing users about competing music subscription services.
The European Commission, the EU’s executive arm, stated that Apple’s actions, spanning nearly a decade, may have inflated music streaming subscription costs for iOS users. The Commission believes this stems from the high commission fees Apple imposes on developers, which are then passed on to consumers.
Margrethe Vestager, Executive Vice-President of the Commission, emphasized that Apple misused its dominant position in the distribution of music streaming apps through the App Store. The Commission has mandated Apple to remove these restrictions and cease similar practices in the future.
Apple vehemently contested the decision and vowed to appeal. The company claims the Commission failed to find concrete evidence of consumer harm and disregards the dynamism and competitiveness of the music streaming market.
This fine comes amidst a broader effort by the EU to regulate large tech companies. The bloc recently enacted the Digital Markets Act (DMA), which requires companies like Apple, Google, and Amazon to comply with new regulations starting March 7th, 2024. These regulations aim to foster a more competitive digital marketplace.
