EU IMPOSES €1.8BLN FINE ON APPLE IN SPOTIFY ANTITRUST CASE
Apple has been fined more than 1.8 billion euros ($1.95 billion) by the European Union, marking its first-ever fine, for hindering Spotify and other music streaming services from informing users about payment options outside its App Store.
The decision by the European Commission follows a 2019 complaint by Swedish music streaming service Spotify regarding this restriction and Apple’s imposition of 30% App Store fees.
The EU competition enforcer stated that Apple’s limitations constituted unfair trading conditions, a relatively new argument in an antitrust case, also utilized by the Dutch antitrust agency in a 2021 decision against Apple in a case initiated by dating app providers.
The EU competition enforcer added an additional lump sum of 1.8 billion euros to the basic amount as a deterrent to Apple, citing a significant part of the harm caused by Apple’s conduct as non-monetary. However, it did not disclose the basic amount.
“For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store,” said EU antitrust chief Margrethe Vestager in a statement. “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.”
Apple responded, stating, “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.”
The company highlighted Spotify as the main advocate for the decision, noting that Spotify pays no commission to Apple as it sells subscriptions on its website rather than through Apple’s App Store.
Vestager’s directive to Apple to remove its App Store restrictions aligns with the same requirement under new EU tech rules known as the Digital Markets Act (DMA), which Apple must comply with by March 7.
While Apple’s fine is substantial, it amounts to about a quarter of the 8.25 billion euro fines imposed by the EU regulator on Alphabet’s Google in three cases over the previous decade.
In contrast to the music streaming case, Apple is aiming to settle another EU antitrust investigation by proposing to open up its tap-and-go mobile payment systems to competitors.
EU regulators, following feedback from rivals and users, are likely to accept Apple’s offer without imposing a fine on the company.
From the News Source: Techeconomy
