The EU fined Apple 1.84 billion euros ($2 billion) for thwarting competition from music streaming rivals via restrictions on its App Store, the iPhone maker’s first ever penalty for breaching EU rules, Reuters reports.
The European Commission charged Apple last year with preventing Swedish streaming service Spotify and others from informing users of payment options outside its App Store, following a 2019 complaint by Spotify, as per the report.
Apple’s restrictions constituted unfair trading conditions, said the European Commission. The argument was also used by the Dutch antitrust agency in a decision against Apple in 2021 in a case brought by dating app providers, the Reuters report stated. Apple said it would appeal the decision. The report added that a ruling is likely to take several years and until then, Apple will have to pay the fine and comply with the EU order.
Criticising the decision, Apple said in a statement it “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”. It added, “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.”
Spotify said, “While we are pleased that this case delivers some justice, it does not solve Apple’s bad behaviour towards developers beyond music streaming in other markets around the world.”