The European Union recently fined Apple a hefty €1.84 billion ($2 billion) for violating its competition regulations.
The EU made the decision public on Monday, marking its first-ever antitrust penalty against the American tech giant.
The fine was imposed due to Apple’s actions, which hindered competing music streaming services like Spotify from informing iPhone users about cheaper subscription options outside of Apple’s app store.
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Margrethe Vestager, the EU’s competition and digital chief, criticized Apple for “abusing its dominant position” in distributing music streaming apps.
She emphasized that European consumers were deprived of “a free choice as to where, how, and at what prices to buy music streaming subscriptions.”
Apple defended itself, stating that the European Commission’s decision was made without finding any credible evidence of harm to consumers.
The company argued that the market is competitive and flourishing, providing a level playing field for app developers on its app store.
The antitrust investigation into Apple began in 2020 after Spotify filed a complaint the previous year, alleging unfair treatment by Apple.
Spotify claimed that Apple charged a 30% fee on purchases through its in-app payment system while exempting its own service, Apple Music, from this fee.
Additionally, Spotify accused Apple of blocking it from sharing subscription deals with iPhone users.
Apple’s dominant position in the smartphone market was a key point in Spotify’s argument, as its operating system is the sole means for offering apps to iPhone users.
In response to mounting pressure, Apple announced changes to its app policies in January.
These changes, including allowing third-party app stores on iPhones and iPads for the first time and reducing app store fees significantly, were made in anticipation of upcoming EU regulations under the Digital Markets Act, aimed at regulating Big Tech companies.
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