BRUSSELS (Reuters) – Apple was fined 1.84 billion euros by the European Union on Monday for preventing Spotify and other online music services from informing users of music streaming options. payment outside its App Store, European Competition Commissioner Margrethe Vestager announced on Monday.
The case was brought before the European competition authority in 2019 by the world’s number one music streaming service, Spotify.
This is the first time that the iPhone manufacturer has received a fine for violating European competition law.
Apple shares lost nearly 2% in early trading on the New York Stock Exchange, while Spotify gained 0.4%.
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According to the European Commission, the restrictions put in place by Apple constitute unfair trading conditions.
“For a decade, Apple has abused its dominant market position for the distribution of music streaming through the App Store,” Margrethe Vestager said at a press conference.
“(Apple) prevented developers from informing consumers about alternative and cheaper music services available outside of Apple’s ecosystem. This is contrary to EU competition law,” it said. she added.
The fine is broken down into a basic element of 40 million euros, an amount that Margrethe Vestager described as a “parking ticket” for the “tech” giant, and a deterrent element of 1.8 billion. This is the first time that the EU has added such a dissuasive sum to the basic fine, said the Competition Commissioner.
Apple criticized the European Union’s decision and announced that it would appeal.
“The decision was rendered when the Commission failed to find credible evidence of harm to consumers and ignored the reality of a thriving, competitive and growing market,” the Californian group said in a statement.
According to Apple, the main “beneficiary” of this judgment is Spotify.
Apple claims that the Swedish group does not pay it any commission because it sells its subscriptions through its website and not the App Store.
Spotify welcomed the European Commission’s ruling but said there were other issues to resolve with Apple.
“And while we are pleased that this case brings some justice, it does not address Apple’s poor behavior toward developers beyond music streaming in other markets around the world,” said Spotify in a press release.
(Reporting by Foo Yun Chee; French version Zhifan Liu, editing by Blandine Hénault and Bertrand Boucey)
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