Spotify says Apple prevented music-streaming companies from informing customers of fee choices exterior its App Store.
The EU has issued Apple with an antitrust superb of over 1.8 billion euros ($1.95bn) following a grievance by music streaming service Spotify.
The US tech large instantly vowed on Monday to attraction the penalty. It was the first-ever antitrust superb slapped on the corporate by Brussels.
The European Commission introduced that the cost was triggered after Spotify complained in 2019 that Apple had prevented music-streaming companies from informing customers of fee choices exterior its App Store.
The European Union’s competitors regulator stated Apple’s restrictions constituted unfair buying and selling situations. That is a comparatively novel argument in an antitrust case, however it was additionally utilized by the Dutch antitrust company in a choice in opposition to Apple in 2021 in a case introduced by courting app suppliers.
“For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store,” EU antitrust chief Margrethe Vestager stated in an announcement.
“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.”
‘No evidence’
Apple criticised the EU determination, saying it will problem it in courtroom.
“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,” the corporate stated in an announcement.
“The primary advocate for this decision — and the biggest beneficiary — is Spotify, a company based in Stockholm, Sweden. Spotify has the largest music streaming app in the world, and has met with the European Commission more than 65 times during this investigation,” it stated.
It stated the Swedish firm pays no fee to Apple because it sells its subscriptions on its web site and never on Apple’s App Store.
Crackdown
The EU has sought to crack down on Big Tech corporations, handing out a sequence of multibillion-dollar fines for Google and charging Meta with distorting the net categorised advert market.
Apple’s superb is a couple of quarter of the 8.25 billion euro ($8.95bn) the EU regulator fined Google in three instances within the final decade.
Vestager additionally has opened a separate antitrust investigation into Apple’s cell funds service. Apple is searching for to settle that by providing to open up its tap-and-go techniques to rivals.
The order for Apple to take away its App Store restrictions echoes a requirement underneath new EU guidelines often called the Digital Markets Act (DMA), which Apple is required to adjust to by March 7.
https://www.aljazeera.com/economy/2024/3/4/apple-hit-with-nearly-2bn-eu-antitrust-fine-in-spotify-case?traffic_source=rss
