It’s quite historic, and since Apple is in the crosshairs, we can say that the company is paying particularly dearly for it. It’s no longer funny.
The European Commission has imposed a record fine of more than 1.8 billion euros on Apple. Accusing the company of abusive practices linked to its App Store. This is the first financial sanction imposed by the EU on the American firm. And the third largest antitrust fine in the history of the Commission, after those addressed to Google for its search services and Android mobile software…
Apple in Europe’s crosshairs
European regulators are criticizing Apple for preventing developers of music streaming apps, such as Spotify, from informing iPhone users about cheaper payment methods. Apart from the Apple App Store… This restriction constitutes according to the Commission an unfair trading condition violating antitrust rules, by being “neither necessary nor proportionate” to protect the commercial interests of the company.
This practice would also have had a negative impact on consumers. Preventing them from making informed and effective decisions about purchasing music subscriptions, while degrading the user experience through tedious searching for deals outside of the app. Apple will now have to remove these clauses which prohibit developers from communicating about other subscription methods.
The size of the fine arises from the need for deterrence highlighted by the Commission. Pointing out the non-monetary damage caused by these offenses, which is difficult to quantify with the usual rules. Apple announced its intention to appeal the decision, refuting any credible evidence of consumer harm and challenging the Commission’s findings.
A change coming?
The move ends a nearly four-year investigation into Apple’s restrictions on developers selling services through its App Store. Although regulators have long been reluctant to question the Apple tax, they have focused on the terms imposed on developers. This case was initially launched following a complaint from Spotify in 2019, accusing Apple of unfairly favoring its own music services.
At the same time, this case recalls the antitrust fight between Epic Games and Apple, centered on similar questions of restrictions imposed by the App Store and commissions considered excessive, reflecting a growing concern about the market power and commercial practices of Apple in the digital ecosystem. With the introduction of new European regulations such as the Digital Markets Act, Apple, like other technology giants, is being pushed to further open up its services, despite its reluctance and ongoing legal challenges.