apple-fined-record-1-8-billion-by-eu-for-app-store-antitrust-violations

Tech giant Apple Inc. has faced a historic antitrust fine of over 1.8 billion euros ($1.95 billion) from the European Union on Monday, marking its first-ever penalty of this magnitude.

 

The fine was imposed for allegedly impeding competitors like Spotify from informing users of alternative payment options outside of its App Store, a move deemed anticompetitive by EU authorities.

 

The European Commission's decision stemmed from a complaint filed by Swedish music streaming service Spotify in 2019, citing Apple's imposition of a 30% commission fee on App Store transactions and its restrictions on app developers regarding external payment options.

 

This ruling marks a significant development in antitrust enforcement, as the EU characterized Apple's actions as creating unfair trading conditions, a relatively novel argument in antitrust litigation.

 

Margrethe Vestager, the EU's competition chief, condemned Apple's behavior, stating, "For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store." She highlighted Apple's prohibition on developers informing consumers about alternative, cost-effective music services outside of its ecosystem, labeling it a violation of EU antitrust regulations.

 

In response to the fine, Apple criticized the EU's decision, vowing to challenge it in court. The company argued that the Commission failed to present credible evidence of consumer harm and disregarded the competitive dynamics of the market. Apple also pointed out Spotify's central role in advocating for the penalty, emphasizing the streaming giant's extensive engagement with EU regulators throughout the investigation.

 

Apple highlighted Spotify's exemption from App Store commissions, as the music streaming service sells subscriptions directly through its website rather than through the App Store. 

 

The EU's order to Apple to dismantle its App Store restrictions aligns with the forthcoming Digital Markets Act (DMA), which mandates greater transparency and competition in the tech industry. Apple faces a deadline of March 7 to comply with these new regulations.