The European Commission has imposed a fine of €1.8 billion on Apple for abusing “anti-trust laws” by preventing app developers from informing iOS users about available alternative and less expensive music subscription services outside their app. The commission said this was “unfair trading conditions.” The sweeping decision was made after a formal investigation begun in June 2020 that followed Spotify’s complaint claiming that Apple limited competition and choice in its App Store. Apple was also ordered to eliminate the “Anti-steering” provision from the App Store.
Apple does not agree with the decision and has declared it will appeal the European Commission’s decision. Apple’s reaction said the lead complainant, Spotify, occupies a dominant position in the market with 56% of the European music industry. It further states that since 2015, it has launched three investigations that previously held no claim. The company claims that a significant part of Spotify’s success is because of the App Store, for which they pay nothing.
Music streaming companies are charging higher prices because Apple made it difficult for iOS users to access alternative subscription prices, according to the EU. Apple has been fined a proportional €1.8 billion to its global revenue, as per reports by The Financial Times, to deter the company from any further anti-trust behavior. In addition, Apple has time to remove the provision from the App Store after formally conducting an investigation for violations of “anti-trust laws.”
The fine, which is the first anti-trust fine of the European Union to be handed out to Apple, is one of the biggest on a technology corporation to date. Despite Spotify’s dominance, which Apple points out in its reaction, the EU insists that anti-trust rules must be respected so that rival services and users alike can survive sharing the single market
Read the full article from Mixmag here: Read More