BRUSSELS, Belgium (CelebrityAccess) — The European Commission hit Apple with a fine totaling more than €1.8 billion for limiting competition from music streaming rivals through limitations imposed on app developers in Apple’s ecosystem.
As the EU notes, Apple is the sole provider of an App Store where developers can distribute their apps to iOS users throughout the European Economic Area. According to the EU, Apple’s limitations prevented music streaming app developers from informing consumers about potentially cheaper music streaming apps.
The European Commission charged Apple in 2023 with preventing Spotify from notifying users about potential payment options for Spotify outside of the Apple Store.
According to the EU, Apple’s practices over the past decade have led to iOS users paying higher prices for music streaming subscriptions due to the commission fees imposed by Apple on external developers that are reflected in subscription prices for apps on the iOS platform.
Additionally, consumers faced non-monetary harm when they were forced into “cumbersome” searches to find relevant officers outside of the app.
The EU’s fine was based on factors such as the duration and gravity of the infringement, as well as Apple’s total turnover and market capitalization.
“For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store. They did so by restricting developers from informing consumers about alternative, cheaper music services available outside of the Apple ecosystem. This is illegal under EU antitrust rules, so today we have fined Apple over €1.8 billion,” stated Margrethe Vestager, Executive Vice-President in charge of competition policy.
Apple said it would appeal the decision.
