The European Union (EU) has fined tech giant Apple €1,800,000,000 for violating music streaming regulations and favoring its own music streaming service over rivals, following a complaint by streaming service Spotify.
The EU alleges that Apple did not adequately inform users of alternative and cheaper subscription services, resulting in iPhone and iPad users paying significantly higher prices for music streaming subscriptions.
According to the EU statement released on Monday, March 4, Apple’s restrictive policies prevented app developers from informing iOS users about alternative subscription options available outside of the app, thereby limiting competition and consumer choice.
These policies included banning developers from providing information about pricing disparities between in-app subscriptions and those available elsewhere, as well as restricting the inclusion of links to external subscription offers within their apps.
Apple also prohibited app developers from contacting their users directly to inform them about alternative pricing options.
The European Commission, which conducted a five-year investigation into Apple’s practices, took into account the duration and gravity of the infringement, as well as Apple’s total turnover and market capitalization, in determining the fine.
The commission also noted that Apple submitted incorrect information during the investigation process. To ensure a sufficiently deterrent penalty, an additional lump sum of €1.8 billion was added to the fine.
Responding to the decision, Apple criticized the commission’s findings, stating that there was no credible evidence of consumer harm and emphasizing the competitiveness of the market.
Meanwhile, Spotify welcomed the EU’s judgment, emphasizing the importance of prioritizing consumer interests and allowing for a level playing field in the market.
This fine is not an isolated incident for Apple, as the EU has also initiated a separate antitrust investigation into the company’s mobile payments service.
In response, Apple has committed to opening up its tap-and-go mobile payment system to rivals to address concerns regarding anti-competitive practices in the mobile payments sector.
However, the EU’s decision to fine Apple underscores the regulatory scrutiny faced by tech giants regarding their market dominance and treatment of competitors.
