STORY: “Today, the Commission has fined Apple 1.84 billion euros for abusing its dominant position on the market for the distribution of music streaming apps.”
Apple was hit with a $2 billion EU fine on Monday (March 4), its first antitrust penalty.
It was for preventing Spotify and other music streaming services from informing users of payment options outside its App Store.
The European Commission’s decision was triggered by a 2019 complaint by Sweden’s Spotify over both this restriction and Apple’s 30% App Store fees.
The EU regulator said Apple’s restrictions constituted unfair trading conditions, a relatively novel argument in an antitrust case.
It comprised a basic element of 40 million euros, described by European Competition Commissioner Margarethe Vestager as a “parking ticket” for the U.S. giant…
Plus an additional lump sum of 1.8 billion euros as a deterrent.
The antitrust chief said this was the first time the Commission has added a deterrent separate lump sum on top of an antitrust fine.
“For a decade, Apple has restricted music streaming app developers from informing their consumers about cheaper options available outside of the app. Apple has done so by contractually imposing anti-steering rules on music streaming app developers.”
Vestager ordered Apple to remove these anti-steering provisions and to refrain from similar practices in the future.
Apple criticized the EU decision, saying in a statement: “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.”
It also said it would challenge the decision in court.
A ruling at the Luxembourg-based General Court, Europe’s second-highest, is likely to take several years.
Until then, Apple will have to pay the fine and comply with the EU order.
