US tech giant has been fined more than €1.8 billion by the European Commission for breaking antitrust rules by not allowing music streaming apps to tell users about payment options outside of the app.
Apple has been hit with the fine as the Commission said Apple had abused its dominant position in the market for 10 years by stopping Spotify and other music streaming platforms from telling users of payment options that are available outside of Apple’s App Store – something illegal under antitrust rules.
The company has been ordered to take down all the restrictions and not to use similar tactics in the future.
“For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store,” said Margrethe Vestager, Executive Vice-President in charge of competition policy. “They did so by restricting developers from informing consumers about alternative, cheaper music services available outside of the Apple ecosystem. This is illegal under EU antitrust rules, so today we have fined Apple over €1.8 billion.”
In a statement, Spotify said: “Today’s decision marks an important moment in the fight for a more open internet for consumers. The European Commission has made its conclusion clear: Apple’s behaviour limiting communications to consumers is unlawful. This decision sends a powerful message — no company, not even a monopoly like Apple, can wield power abusively to control how other companies interact with their customers.”
However, Apple has come out fighting in response to the ruling. In a lengthy statement published on its website, the company rebutted the decision and signalled its intention to appeal.
“Today, the European Commission announced a decision claiming the App Store has been a barrier to competition in the digital music market,” the statement read. “The decision was reached despite the Commission’s failure to uncover any credible evidence of consumer harm and ignores the realities of a market that is thriving, competitive, and growing fast.
“So while we respect the European Commission, the facts simply don’t support this decision. And as a result, Apple will appeal.”
