The European Commission hit Apple with a €1.8 billion fine (around $3 billion) for stifling competition in the music streaming market. Additionally, Apple must stop preventing music streaming apps from informing users about alternative subscription options outside the App Store.
This unprecedented fine marks the first antitrust penalty imposed on Apple by the EU.
“Apple misused its dominant position in the App Store for a decade,” said EU’s antitrust chief Margrethe Vestager. “They restricted developers from informing users about potentially cheaper alternatives outside the Apple ecosystem.”
Apple plans to appeal, arguing the Commission “ignored a thriving, competitive market.” This comes as Apple reported $119.6 billion in first-quarter revenue, with iPhone sales reaching $69.7 billion.
Vestager, known for her aggressive approach to regulating Big Tech, has strategically used fines to curb dominance. This is the third-largest such fine she has imposed.
Previously, she fined Google a record €4.3 billion for its Android dominance and €2.4 billion for allegedly favoring its own shopping service. She also ordered Apple to repay €13 billion in alleged unfair tax breaks from Ireland.
The investigation stemmed from a complaint by Spotify, claiming Apple’s control over the App Store forced them to raise subscription fees.”This decision sends a powerful message,” Spotify said, “no company, even a monopoly, can dictate how businesses interact with customers.”
The Commission accused Apple of using “anti-steering rules,” deeming them unnecessary and leading to higher prices.Apple countered, stating they “allowed Spotify and others to direct users to the web for subscriptions,” and that the decision ironically “strengthens the dominant position of a successful European company.”
The EU believes Apple’s rules hindered informed choices, potentially leading some to pay more.”The Commission found that Apple’s rules withheld key information on prices and features,” said Vestager.
