The European Union has just fined Apple 1.84 billion euros for violating antitrust rules in the market for music streaming services on iOS, mentions TechCrunch.
The fine relates to Apple’s enforcement of a strategy that limits the ability of music streaming apps to inform customers of cheaper deals offered outside of Apple’s App Store.
Separately, Apple has its own music streaming service, Apple Music, and its rivals, such as Spotify, have argued that these restrictions create a distortion of competition.
“Apple’s rules have harmed consumers”
“Apple’s rules have harmed consumers,” said Margrethe Vestager, European Commissioner for Competition. “Critical information was withheld (and) some consumers may have paid more because they were unaware that they could pay less if they subscribed outside of the app. may have failed to subscribe to the music streaming provider they preferred because they simply couldn’t find it.
“We therefore consider these to be unfair trading conditions, because they were imposed unilaterally by a company in a dominant position.”
Apple responded to the Commission’s antitrust ruling by publishing a blog post lashing out at the EU, saying enforcement authorities have found “no credible evidence of harm for consumers and ignore the realities of a thriving, competitive and growing market.
“The harm caused to millions of European users”
The sanction follows an antitrust complaint filed in March 2019 by Spotify, which claimed that Apple’s App Store rules “limit choice and stifle innovation”, and accused the iPhone maker of deliberately disadvantaging other application developers by being both “a player and a referee”.
In June 2020, the EU announced a formal antitrust investigation into the App Store, stating concerns that Apple’s policies could distort competition.
In detail, the fine breaks down as follows:
- 40 million euros imposed on Apple for breaking EU rules.
- A “lump sum” of 1.8 billion euros intended to “take into account the non-monetary harm caused to consumers and to have a deterrent effect”, according to Ms. Vestager.
“The fine we impose reflects both Apple’s financial power and the harm its behavior has caused to millions of European users,” she said, specifying that the total penalty (1.84 billion euros) represents 0.5% of the iPhone manufacturer’s global turnover.
New conditions
And in addition to the fine, the European Commission imposes conditions on Apple.
“From now on, Apple will have to allow developers of music streaming applications to communicate freely with their own users, whether within the application, by email or by any other means of communication,” Ms. Vestager said.
From Thursday therefore, Apple will have to change its policy in this area for applications under iOS, to comply with the Digital Markets Act (DMA). In fact, Apple has been designated as a gatekeeper, which imposes specific rules on it with regard to this legislation.