EU Imposes $2 Billion Fine on Apple for Anti-Competitive Practices in Music Streaming

The European Union has imposed a major financial penalty on tech giant Apple, amounting to $2 billion, for what they have determined to be anti-competitive behavior within its App Store environment—particularly against other music streaming services like Spotify.

Fine Originates from Spotify Complaint

In 2019, Spotify, the leading music streaming service with double the paid subscribers of Apple Music, lodged a formal complaint with the European Commission. The complaint suggested that Apple's App Store practices were obstructing Spotify's communication with potential subscribers regarding upgrades, pricing, and special offerings, thus limiting Spotify's growth and market potential.

European Commission's Stance

Following the complaint and subsequent investigation, the European Commission concluded that Apple had indeed abused its dominant position by restricting how app developers could interact with customers regarding alternative and often cheaper music services outside of Apple's own platform. The fine, equivalent to 1.8 billion euros, was confirmed via the European Commission's official Twitter account.

EU antitrust chief Margrethe Vestager highlighted Apple's decade-long market abuse in the distribution of music streaming apps through its App Store, emphasizing that consumer choice was significantly hampered due to Apple's practices.

Apple's Response and Appeal

Responding to the fine, Apple announced its intention to appeal against the decision, defending its App Store as a platform providing ample choice for European consumers and accusing Spotify of manipulating European regulators to its own advantage. Despite the accusations, Apple faces scrutiny as Vestager has a track record of imposing hefty fines on major tech companies for anti-competitive actions.

Apple, EU, Fine