Apple will take out the checkbook and pay a heavy fine of 1.8 billion euros, a decision announced on March 4, 2024 after an investigation launched in 2020 following legal action brought the previous year . In the sights of the European Commission, the anti-competitive practices of the Cupertino firm in the music streaming market in order to promote Apple Music.
Anti-competitive practices according to the EU
According to the Commission, Apple did everything to prevent developers and other competitors of Apple Music from offering“alternative and less expensive offers outside its ecosystem” to their customers. Investigators believe that this practice, which took place for almost a decade, constitutes an act “illegal”as Margrethe Vestager, Competition Commissioner, explains.
As Apple prepares to open its ecosystem to other stores on March 6, 2024 due to the Digital Markets Act (DMA), Brussels explains that these practices have “pushed many users to pay a higher price for subscriptions because of the high commissions imposed by the Cupertino company on developers that consumers compensated financially”. Remember that this commission has been causing controversy for some time. Epic Games (Fornite, Unreal Engine) embarked on a legal battle for this reason against the Californian group.
Spotify
Spotify is a music streaming platform that allows you to listen to unlimited music, radio and podcasts either without a subscription (with advertising) or with a subscription.
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Downloads:
1283 -
Release date :
03/04/2024 -
Author :
Spotify AB -
Licence :
Free license -
Categories:
Music
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Operating system :
Android, Google Chrome Extension, Linux, Online Service, Windows XP/Vista/7/8/10/11, iOS iPhone / iPad / Apple Watch, macOS
Among the impacted developers is Spotify, which challenged Apple’s anti-competitive practices before European authorities. According to the Swedish company, the Californian does not ensure “freedom of choice for consumers and a fair ecosystem for developers”. Spotify welcomed Brussels’ decision.
Apple appeals the decision
If the fine is so high, it is because Europe calculated it according to “global income” from Apple. It is therefore intended to be dissuasive, like a message sent to other giants accused of anti-competitive practices: Amazon, Google, Meta… The Californian company is also prohibited from applying the same anti-competitive practices in the future. More precisely, by using its integrated payment solution including a high commission.
Unsurprisingly, Apple appealed this decision. According to the company, the EU has not “not been able to provide the slightest credible evidence of harm to consumers”. The Cupertino company also believes that Brussels “ignores the realities of a thriving, competitive and rapidly growing market” and that Spotify owes its success in particular to the App Store and its technologies. To be continued.