The European Union (EU) has slapped a hefty fine of over 1.8 billion euros ($1.95 billion) on Apple, the tech giant, for what the EU considers unfair practices. The European Commission’s move comes after a complaint by Spotify in 2019, accusing Apple of hindering competition by not allowing music streaming services to tell users about payment options beyond its App Store.
The EU argues that Apple’s actions created an uneven playing field and violated antitrust rules. Margrethe Vestager, the EU antitrust chief, stated, “For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store.” The significant fine is justified by the EU as Apple’s conduct is seen as causing harm beyond just financial implications.
Apple, on the other hand, is not taking this lightly and plans to challenge the decision in court. The company contends that there is no credible evidence of harm to consumers and insists that the market is competitive. Apple also points out that the main beneficiary of this decision is Spotify, which pays no commission to Apple.
This ruling aligns with upcoming regulations known as the Digital Markets Act, effective March 7, signaling a shift in how tech giants operate in the EU. Despite being a historic fine, it’s noted that it’s about a quarter of the penalties imposed on Google by the EU in the past decade. Concurrently, Apple is looking to settle another EU antitrust investigation by proposing more openness in its mobile payment systems to competitors, aiming to avoid additional fines.
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