Apple fined $2 billion by EU for breaching antitrust regulations concerning App Store’s distribution of music streaming apps to iPhone and iPad users.
The European Commission has levied a hefty fine of over €1.8 billion against US tech giant Apple Inc. for breaching antitrust regulations concerning its App Store’s distribution of music streaming apps to iPhone and iPad users within the European Economic Area (EEA). The Commission found that Apple’s practices constituted an abuse of its dominant market position.
At the core of the issue are the restrictions imposed by Apple on app developers, preventing them from informing iOS users about alternative and potentially cheaper music subscription services available outside the App Store. These restrictions, referred to as ‘anti-steering provisions,’ were deemed illegal under EU antitrust rules.
“Apple’s conduct, which lasted for almost ten years, may have led many iOS users to pay significantly higher prices for music streaming subscriptions because of the high commission fee imposed by Apple on developers and passed on to consumers,” the EU’s powerful antitrust regulator said.
Spotify’s complaint in 2019 triggered a broad commission investigation into the iPhone maker in 2021, but Brussels narrowed its probe last year to focus on Apple’s actions to prevent apps from giving users information about rival music subscription options.
