EU fines Apple for violating antitrust laws

Apple

This marks the first time the European Union has penalized the U.S.-based tech giant for antitrust violations, following an investigation initiated by a complaint from Spotify

The European Commission has imposed a fine of 1.8 billion euros ($2 bullion) on Apple for violating antitrust laws related to the company’s app store regulations and their impact on the music streaming industry.

This marks the first time the European Union has penalized the U.S.-based tech giant for antitrust violations, following an investigation initiated by a complaint from Spotify.

The fine specifically addresses Apple’s anti-steering provisions, which restrict music streaming app developers from informing iOS users about alternative subscription services outside of the App Store.

The European Union found Apple’s anti-steering provision amounts to “unfair trading conditions” and is “neither necessary nor appropriate” to protect Apple’s commercial interests. The rules instead “negatively affect the interests of iOS users,” the commission said.

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, European Commission executive vice president Margrethe Vestager said in a statement.

Apple, which offers its own music streaming service, Apple Music has announced plans to appeal the decision and has refuted claims of anti-competitive practices in a blog post. The post emphasizes Spotify’s dominant position in the European music streaming market, with a 56% share, as part of Apple’s defence against the allegations.

Spotify in a statement cheered the decision as an “important moment in the fight for a more open internet for consumers,” adding that “we’re looking forward to the next steps that will hopefully clearly and conclusively address Apple’s long-standing unfair practices.”

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