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EU slam Apple with a €1.8bn fine for breaking music streaming rules
The European Union EU has handed down a verdict, finding Apple guilty of violating streaming rules and regulations, resulting in a hefty fine of 1.8 billion euros.
The European Commission imposed a fine of €1.1 billion ($1.2 billion) on Apple for breaching antitrust laws. The fine stems from allegations that Apple hindered Spotify and other music streaming services from informing users about payment alternatives outside the Apple app store.
The EU competition watchdog determined that Apple abused its dominant market position by imposing restrictive regulations on app developers. These regulations prohibited developers from notifying consumers about cheaper music services available outside the Apple ecosystem and mandated the use of Apple’s in-app purchase system, which imposes a 30% commission fee.
The European Commission’s decision was prompted by a complaint from Spotify, highlighting Apple’s 30% fee and restrictions. Margrethe Vestager, the EU competition enforcer, stated that Apple’s actions constituted anti-competitive behavior spanning a decade, ultimately harming consumers by limiting choice and stifling innovation.
As part of the ruling, Vestager instructed Apple to remove all restrictions and refrain from similar practices in the future. Apple intends to appeal the decision, contending that it is unwarranted and lacks evidence of consumer harm. The company also argues that the ruling could impede innovation and investment in Europe.
The tech giants in an official statement stated, “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. The primary advocate for this decision, and the biggest beneficiary, is Spotify, a company based in Stockholm, Sweden. Spotify has the largest music streaming app in the world, and has met with the European Commission more than 65 times during this investigation.”