Monday, March 04, 2024 – The European Union hit Apple with a massive $2 billion fine after finding that the tech giant unfairly favored its own music streaming service over rivals such as Spotify.
The company banned app developers from 'fully informing iOS
users about alternative and cheaper music subscription services outside of the
app,' said the European Commission, the 27-nation bloc's executive arm and top
antitrust enforcer.
That is illegal under EU antitrust rules. Apple
behaved this way for almost a decade, which meant many users paid
'significantly higher prices for music streaming subscriptions,' the commission
said.
The fine follows a long-running investigation triggered by a
complaint from Spotify five years ago.
In response to the fine, Apple released a
statement alleging that the commission had failed to find 'any credible
evidence of consumer harm, and ignores the realities of a market that is
thriving, competitive, and growing fast.'
'While we respect the European Commission, the facts simply
don’t support this decision,' the statement continued. Apple has promised to
appeal the ruling.
The statement goes on to remark that Spotify pays Apple
'nothing for the services that have helped to make them one of the most
recognizable brands in the world.'
'We’re proud to play a key role supporting Spotify’s success
— as we have for developers of all sizes,' the statement remarked.
At a press conference Monday, Margrethe Vestager, the
European Commission executive vice president, accused Apple of 'abusing' its
position.
'For a decade, Apple abused its dominant position in the
market for the distribution of music streaming apps through the App Store. From
now on, Apple will have to allow music streaming developers to communicate
freely with their own users.'
'[The fine] reflects both Apple’s financial power and the
harm that Apple’s conduct inflicted on millions of European users,' Vestager
said.
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