EU hits Apple with 1.8 billion euro antitrust fine, firm says will appeal penalty
The Apple logo is seen hanging at the entrance to the Apple store on 5th Avenue in Manhattan, New York, U.S., October 16, 2019. Photograph:( Reuters )
Story highlights
Swedish music streaming service Spotify lodged a complaint in the year 2019 which triggered a broad commission probe into the firm in 2021. However, Brussels narrowed its investigation last year to focus more on Apple's actions of barring applications from providing users with information about rival music subscription options.
Swedish music streaming service Spotify lodged a complaint in the year 2019 which triggered a broad commission probe into the firm in 2021. However, Brussels narrowed its investigation last year to focus more on Apple's actions of barring applications from providing users with information about rival music subscription options.
The European Union on Monday (March 4) hit iPhone maker Apple with an antitrust fine of over 1.8 billion euros ($1.95 billion) for preventing music streaming services like Spotify from informing users about payment options outside its App Store.
The European Commission said it "found that Apple applied restrictions on app developers preventing them from informing iOS users about alternative and cheaper music subscription services available outside of the app".
"This is illegal under EU antitrust rules," the EU's powerful antitrust regulator said.
"Apple's conduct, which lasted for almost ten years, may have led many iOS users to pay significantly higher prices for music streaming subscriptions because of the high commission fee imposed by Apple on developers and passed on to consumers," it further added.
Swedish music streaming service Spotify lodged a complaint in the year 2019 which triggered a broad commission probe into the firm in 2021. However, Brussels narrowed its investigation last year to focus more on Apple's actions of barring applications from providing users with information about rival music subscription options.
"For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store," Commission Vice President Margrethe Vestager said in a statement.
"We have ordered Apple to remove the necessary provisions and to refrain from similar practices in the future," Vestager told reporters.
Also read: Google sorry over 'unreliable' platform Gemini after remarks on PM Modi
Apple says will appeal penalty
Apple released a statement slamming the EU's decision and said that it would appeal the penalty.
"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," Apple said in a statement.
"While we respect the European Commission, the facts simply don't support this decision. And as a result, Apple will appeal," the company added.
(With inputs from agencies)
