Home » Apple fined $2 billion by EU for harming competition in music distribution | Reuters

Apple fined $2 billion by EU for harming competition in music distribution | Reuters

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Apple fined $2 billion by EU for harming competition in music distribution | Reuters

The European Commission has announced that it will fine Apple 1.84 billion euros for violating EU competition law. Photographed in 2016 (2024 Reuters/Dado Ruvic/Illustration)

[ブリュッセル 4日 ロイター] – The European Union (EU) European Commission on the 4th decided that Apple (AAPL.O), opens new tab violates EU competition law (equivalent to Japan’s antitrust law) and fined it 1.84 billion euros. announced that it would impose a fine of $2 billion. Regarding the music streaming service, it was determined that the company was obstructing users from notifying them of payment methods other than their own app marketplace, “App Store.” Swedish music distribution giant Spotify (SPOT.N), opens new tab, filed a complaint in 2019 that Apple’s interference and 30% processing fee for payments made through the App Store violates competition law. Ta.

Apple criticized the EU’s decision, saying it was “determined despite the European Commission’s failure to uncover any reliable evidence of the harm it would cause to consumers,” and announced that it would begin an appeal process. However, the process is likely to take several years.

Until the case is finalized, Apple will have to pay the fine.

Apple’s stock price fell about 2.7%.

Before the announcement, Reuters reported, citing sources familiar with the matter, that the European Commission was expected to impose a fine of 500 million euros. The actual fine of 1.84 billion euros is equivalent to 0.5% of Apple’s full-year sales.See more

“For 10 years, Apple has abused its dominant position in the market for distributing music streaming apps through the App Store,” European Commission Executive Vice-President for Competition Policy Vestager said in a statement. “It restricted developers from informing consumers about cheaper music services available outside the Apple ecosystem, which is illegal under EU competition law,” he said.

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Spotify welcomes the EU’s decision. At the same time, he said, “Apple’s misguided actions toward developers in markets other than music streaming will not be resolved,” indicating that the problem remains.

Analysts at IDC also said that while the fine is large, it is unlikely to have an immediate impact on Apple’s cash holdings.

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