The European Commission announces that it has imposed a fine of more than 1.8 billion euros on Apple for illegal anti-steering devices that have been rampant on the App Store for many years.
A few days after the indignation of Spotify, Deezer and many others, who denounced a “unfair policy” of Apple and a misuse of the rules of the DMA (Digital Markets Act), the European Commission has just imposed a heavy fine on Tim Cook’s firm due to the conditions imposed by the App Store on the music streaming industry For years.
Illegal anti-steering rules
In a press release published on March 4, 2024, the Commission mentions “abusive App Store rules imposed on music streaming service providers”. It decided on a fine of more than 1.8 billion euros for abuse of a dominant position.
“In particular, the Commission found that Apple imposed restrictions on app developers preventing them from informing iOS users that other, cheaper music subscription services were available outside of the app”, explains the institution. These barriers put in place by Apple “are illegal under European Union rules on anti-competitive practices”she estimated.
Apple charges a fee of up to 30% from transactions made through the App Store payment system. This is often passed on to consumers by streaming services, who therefore pay more for the same service to which they would have subscribed from the web.
A dissuasive fine
“It may be that Apple’s nearly decade-long behavior has led many iOS users to pay significantly higher prices for music streaming subscriptions”denounces the Commission.
For the latter, these “anti-steering provisions are neither necessary nor proportionate” And “negatively impact the interests of iOS users”. The Commission ordered Apple to end the anti-steering provisions and not replace them with an alternative that produces the same effects.
The amount of the fine is particularly high for several reasons: the duration and seriousness of the infringement, the total turnover and market capitalization of Apple and the fact that the company provided inaccurate information in the context of the administrative procedure were taken into account. The Commission hopes that this sanction will “a deterrent effect”for Apple as for other digital giants.
The more the months pass, the more the gaps on the podium between the different players in music streaming seem to narrow. In any case, this is where we are in March 2024, a month where it is always more difficult to decide between Spotify, Apple Music, YouTube Music and other Amazon Music.
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Source : European Commission
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