Regulators in the European Union have hit Apple with a $2 billion fine (actually 1.8 billion euros) over allegations that Apple Music has been muscling out other streaming music platforms like Spotify in the App Store.
Spotify is the No. 1 music streaming service in terms of global market share, with about twice as many paying subscribers as its next most popular competitor, Apple Music. But Spotify feels they would have even more subscribers if Apple’s App Store hadn’t been, in their words, “denying us the ability to communicate with them about how to upgrade and the price of subscriptions, promotions, discounts, or numerous other perks.”
So, back in 2019, Stockholm-based Spotify filed a complaint with the European Commission and called for an antitrust investigation. And they got their way, as Bloomberg reports that on Monday morning, the European Commission hit Apple with a $2 billion fine (which equates to 1.8 billion euros) for allegedly anti-competitive actions against other music streaming rivals in the App Store.
We've fined Apple over €1.8 billion over abusive App Store rules for music streaming providers
— European Commission (@EU_Commission) March 4, 2024
For a decade, Apple abused its dominant position by restricting developers from informing consumers about alternative, cheaper music services available outside of the Apple ecosystem.… pic.twitter.com/0Kp6qugArE
“For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store,” EU antitrust chief Margrethe Vestager said in a statement. “They did so by restricting developers from informing consumers about alternative, cheaper music services available outside of the Apple ecosystem.”
Apple, of course, is simply vowing to appeal the decision, and says the Swedish company Spotify gamed their European regulators.
“The reality is that European consumers have more choices than ever,” Apple said in their response. “Ironically, in the name of competition, today’s decision just cements the dominant position of a successful European company that is the digital music market’s runaway leader.”
This is #illegal. And it had an impact on millions of 🇪🇺 consumers, who were not able to make a #free choice as to where, how, and at what price to buy music streaming subscriptions.
— Margrethe Vestager (@vestager) March 4, 2024
👉 More : https://t.co/RHpMDfFieF
This same European regulator, Margrethe Vestager, has hit tech companies with some pretty staggering fines during her tenure. She levied a $5.1 billion fine against Google in 2019 for allegedly limiting customers’ ability to search for retail shopping options of their rivals on the Android platform; and last year, she ordered Apple to pay $14 billion in back taxes over a series of allegedly improper tax breaks in Ireland.
Image: Brett Jordan via Unsplash
