Why Apple has been fined €1.8 billion by the European Union? The European Union has levied a historic antitrust fine exceeding 1.8 billion euros ($1.95 billion) against tech titan Apple.
Why Apple has been fined €1.8 billion by European Union?
This landmark decision follows a complaint filed by Spotify in 2019, alleging that Apple unfairly impeded music streaming services from informing users about alternative payment options outside of its App Store.
The European Commission found Apple culpable of creating unfair trading conditions by restricting such disclosures, thereby contravening EU antitrust regulations.
Margrethe Vestager, the EU’s antitrust chief, underscored that Apple had exploited its dominant position in the market for distributing music streaming apps through the App Store for more than a decade.
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Vestager emphasized that Apple’s actions had obstructed developers from informing consumers about potentially more cost-effective music services beyond the Apple ecosystem.
The EU justified the substantial fine by arguing that Apple’s conduct had inflicted harm extending beyond mere financial implications.
In response, Apple denounced the decision and vowed to contest it in court.
The company contended that the Commission had failed to produce credible evidence of consumer harm and disregarded the competitive dynamics of the market.
Apple particularly singled out Spotify, a Swedish-based entity that remits no commission to Apple, as the apparent beneficiary of the ruling.
The EU’s directive for Apple to lift App Store restrictions aligns with the impending Digital Markets Act (DMA) requirements, slated to come into effect on March 7.
Despite the magnitude of the fine, it amounts to approximately a quarter of the penalties previously imposed on Google by the EU over the past decade.
Furthermore, Apple is endeavoring to resolve another EU antitrust inquiry by offering to open its tap-and-go mobile payment systems to competitors. This gesture is anticipated to be embraced without further financial penalties.
