EU imposes record $2 billion fine on Apple for antitrust violations
In a historic move, the European Union has slapped Apple with a staggering €1.84 billion ($2 billion) fine for violating competition regulations. This landmark decision highlights the EU's strict stance against antitrust practices.
The European Union fined Apple €1.84 billion ($2 billion) for violating competition laws. This marks the bloc's first antitrust penalty against the US tech giant. The fine was imposed for blocking rival music streaming services like Spotify from informing iPhone users about cheaper subscription options outside of Apple's app store.
Margrethe Vestager, the EU’s competition and digital chief, expressed concern about Apple's actions. She mentioned that Apple had unfairly used its strong position to control the distribution of music streaming apps. Vestager pointed out that European consumers were not able to freely choose where, how, and at what prices to purchase music streaming subscriptions.
At a press conference, Vestager stated that Apple's behavior was against the law and had negatively affected millions of European consumers.
Apple has responded to the European Commission's decision, stating that the EU's executive arm made its ruling without finding any credible evidence of harm to consumers. The company also mentioned that the decision overlooks the fact that the market is doing well, competitive, and growing rapidly.
In a statement, Apple emphasized that all app developers have an equal opportunity to compete on the app store platform.
The European Commission launched an official antitrust probe into Apple in 2020. This came after Spotify filed a complaint against Apple in the previous year. Spotify accused Apple of giving unfair advantages to its own service, Apple Music, at the expense of competitors.
Apple was alleged to have mandated a 30% fee on purchases made through its in-app payment system for services like Spotify. However, Apple Music was exempt from this fee. Additionally, Spotify claimed that Apple restricted it from sharing details about subscription offers with iPhone users.
Spotify mentioned that Apple is a major player in the smartphone industry and their operating system is essential for users to access the app on iPhones.
Recently, Apple made a significant announcement about changes in how apps are handled in the EU. This includes allowing third-party app stores on iPhones and iPads for the first time, as well as reducing app store fees.
The changes were announced in preparation for the implementation of EU regulations this month under the Digital Markets Act, which includes new competition rules for Big Tech companies.
Stay tuned for updates as this story continues to develop.
