In a significant development, the European Commission has imposed a hefty fine of €1.8 billion (approximately $2 billion) on tech giant Apple for anti-competitive behavior against music streaming service Spotify. The European Commission, in a press release, accused Apple of abusing its dominant position in the market for distributing music streaming apps through the App Store.
Specifically, the Commission found that Apple had enforced restrictions on app developers, preventing them from informing iPhone and iPad users about alternative and more affordable music subscription services available outside of the App Store, a violation of EU antitrust rules known as ‘anti-steering provisions.’
While Apple expressed shock at the substantial fine, emphasizing its commitment to providing a “safe and trusted marketplace for users” through the App Store, the European Commission maintains that Apple engaged in anti-competitive practices towards Spotify, despite the streaming service “paying Apple nothing.”
Apple countered by highlighting the immense success of the Spotify app on Apple devices, emphasizing that it has been downloaded, re-downloaded, or updated over 119 billion times. The company argued that Spotify benefited from the Cupertino ecosystem and Apple’s APIs without incurring any charges.
The clash between Apple and Spotify revolves around the latter’s desire to embed subscription prices in its app without utilizing the App Store’s In-App Purchase system, aiming to leverage Apple’s tools, technologies, and user trust while avoiding payments to the tech giant.
In the broader context, Apple is gearing up to comply with Europe’s Digital Markets Act (DMA) in the coming days, asserting that the European Commission’s decision is an attempt to enforce the DMA before it officially becomes law.
