Home » EU imposes billion-dollar fine on Apple’s music streaming service

EU imposes billion-dollar fine on Apple’s music streaming service

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EU imposes billion-dollar fine on Apple’s music streaming service

Apple has been fined by the European Commission.

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The European Commission fined Apple €1.8 billion for abusing its market dominance.

Apple had banned app developers from informing users about alternative, cheaper music services.

Apple plans to appeal, arguing that the decision is not credible and favors Spotify.

This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.

Apple was fined 1.8 billion euros by the European Commission, part of the European Union. Apple “abused its dominant market position” in the way it sells music streaming platforms through its App Store, the agency said on Monday in a press release with. “The Commission found that Apple imposed restrictions on app developers that prevented them from informing iOS users about alternative and cheaper music subscription services available outside of the app,” it said.

EU regulators said iOS users were paying “significantly higher prices for music streaming subscriptions” because Apple imposed fees on developers that had been in place for almost a decade. That meant users either had to find deals for cheaper subscriptions outside the app, or didn’t subscribe to a service because they couldn’t find one of their own, the commission said. She added that the restrictions constituted “unfair trading conditions” and were illegal under EU antitrust rules. Apple announced in a press release that it would appeal the decision and attacked Spotify for being “the biggest beneficiary” of the decision.

The tech giant also said the Commission came to the decision despite finding “no credible evidence of harm to consumers and ignoring the realities of a thriving, competitive and rapidly growing market.”

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Apple also accused Spotify of “bending the rules in its favor by embedding subscription prices into its app without using the App Store’s in-app purchase system.” The Commission began investigating Apple after Spotify filed a complaint in 2019. The streaming company claimed Apple’s App Store rules “intentionally limit choice and stifle innovation” by imposing a 30 percent commission on app developers.

Read too

Apple defends itself against Spotify’s allegations

Apple announced changes in the EU to comply with the provisions of the Digital Markets Act, a law intended to increase competition and limit the dominance of tech giants in the digital market. Apple claimed in its press release on Monday that the commission’s decision was “not based on existing competition law” and was instead an attempt by the commission to “enforce the Digital Markets Act” before it becomes law. Spotify shares rose nearly 1.9 percent in Paris following the announcement.

Spotify and Apple did not immediately respond to Business Insider’s requests for further comment.

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