The EU has penalised apple €1.8 billion for violating competition rules.
The European Commission has fined Apple for preventing Spotify and other music streaming services from informing users of payment options outside the Apple app store.
The decision comes after a complaint by Spotify regarding this restriction and Apple’s 30% fee, triggering an investigation by the EU competition enforcer.
Abuse of Dominant Position
The EU competition enforcer found that Apple abused its dominant position in the market for a decade by restricting developers from informing consumers about alternative, cheaper music services available outside of the Apple ecosystem.
Margrethe Vestager, Executive Vice President of the European Commission, declared this practice illegal under EU antitrust rules.
Directive to Remove Restrictions
As part of the penalty, Apple has been ordered to remove all restrictions and refrain from similar practices in the future.
However, Apple has announced its intention to appeal the decision, claiming that there is no evidence of consumer harm and highlighting the thriving and competitive nature of the market.
Spotify’s Involvement
Apple criticized Spotify’s role in advocating for the decision, noting that the Swedish company stands to benefit the most.
Spotify, the largest music streaming app in the world, has been actively involved in discussions with the European Commission throughout the investigation.
Response from Apple
Apple also emphasized that Spotify pays no commission to them as it sells its subscriptions on its website rather than through the app store.
The company contends that the decision overlooks these facts and the competitive dynamics of the market.
The European Commission’s ruling against Apple underscores the ongoing scrutiny of tech giants’ practices and their impact on competition and consumer choice within the digital marketplace.
