The European Commission has imposed a €1.84 billion fine on Apple, marking the company’s first antitrust penalty from the EU. The fine addresses unfair trading conditions that prevented Spotify and other music streaming services from informing users about alternative payment options outside of Apple’s App Store.
Unfair Trading Conditions Apple’s restrictive practices, which included a 30% fee on App Store transactions, were deemed unfair by the EU regulator. This decision follows a complaint by Spotify Case in 2019 and mirrors a similar ruling by the Dutch antitrust agency in 2021.
A Deterrent Fine The substantial fine consists of a €40 million base amount and an additional €1.8 billion as a deterrent. This total represents 0.5% of Apple’s global turnover, according to European Competition Commissioner Margarethe Vestager.
Apple’s Response Apple plans to challenge the EU’s decision in court, criticizing the Commission for not finding credible evidence of consumer harm and for ignoring the competitive nature of the market.
Spotify’s Reaction While Spotify welcomed the EU’s decision, the company highlighted ongoing issues with Apple’s behavior beyond the music streaming sector.
Future Compliance the EU’s order for Apple to remove anti-steering provisions coincides with the upcoming Digital Markets Act (DMA) requirements, which Apple must adhere to by March 7. Apple has received its first EU antitrust fine, a significant $2 billion, for App Store rule violations that disadvantaged competitors like Spotify.
The company plans to appeal but may need to adjust its fees and practices. This EU decision could prompt further legal actions from other developers, casting doubt on the App Store’s future and Apple’s involvement.
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