EU fines Apple $1.95 billion for antitrust violations
Apple faces a major EU antitrust fine and is ordered to change its App Store practices, concluding a four-year investigation
The European Union imposed a substantial fine of $1.95 billion (1.8 billion euros) on Apple for its restrictive practices in the App Store, particularly against music streaming services. This action marks the first time the European Commission has fined the tech giant.
The European Commission charged Apple with blocking app developers, including prominent names like Spotify, from informing iPhone users about cheaper subscription options outside the Apple App Store.
“Apple applied restrictions on app developers preventing them from informing iOS users about alternative and cheaper music subscription services outside of the app,” the Commission said.
They emphasized that this conduct is “illegal under EU antitrust rules.”
According to the Commission, Apple’s “anti-steering provisions” established unfair trading conditions violating antitrust rules. The Commission criticized these terms as “neither necessary nor proportionate” for protecting Apple’s interests.
They highlighted the negative impact on customers, who could not “make informed and effective decisions” about where to buy music subscriptions and faced a “cumbersome search” for offers outside the app.
Consequently, Apple must eliminate terms hindering developers from disclosing alternative subscription methods. The Commission explained that the fine’s size aims to ensure deterrence, stating that “a significant part of the harm caused by the infringement consists of non-monetary harm.”
Reacting to the fine, Apple announced plans to appeal. In a Monday blog post, the company argued that the decision was reached “despite the Commission’s failure to uncover any credible evidence of consumer harm, and ignores the realities of a market that is thriving, competitive, and growing fast.”
This ruling concludes a nearly four-year investigation initiated by Spotify’s 2019 complaint, accusing Apple of favoring its own services over rivals. The probe mainly focused on Apple’s restrictions on app developers regarding subscription purchases outside the App Store.
The EU’s decision precedes the enforcement of new regulations under the Digital Markets Act from March 7, requiring major tech firms like Apple to open their services more broadly. Apple also faces ongoing legal challenges, including issues related to its payment technology and a tax dispute with Ireland.
Source: Newsroom
