The European Union has hit US tech giant Apple Inc. with an antitrust fine of over €1.8 billion, i.e., around $1.95 billion for breaching app store regulations. It was found that Apple abused its dominance in the market and violated regulations regarding the app store’s collection of music streaming platforms for iPhone and iPad holders.
The EU found out that Apple had imposed limitations on app developers that stopped them from notifying iOS users regarding its substitutes and less expensive music streaming platforms available outside the app store. These restrictions, known as the ‘anti-steering provisions,’ were accounted illegal under the antitrust rules of the European Commission.
Moreover, the developers could not communicate with users to discuss the price differences between the Apple app store and those available outside. They were also banned from contacting new users by any means, such as email, regarding alternative subscription costs.
According to the European Commission,
Apple’s conduct, which lasted for almost ten years, may have led many iOS users to pay significantly higher prices for music streaming subscriptions because of the high commission fee imposed by Apple on developers and passed on to consumers in the form of higher subscription prices for the same service on the Apple App Store.
A broad investigation was triggered after Spotify’s complaint in 2019. Two years later, in 2021, the EU started the inspection and constricted it last year to only focus on the iPhone maker’s actions of banning apps from notifying users about cheaper and alternative music subscription services.
It is one of the heftiest fines imposed on a technology company by the European Union. Apple has also given fiery remarks on the judgment by the European Union. The tech giant stated,
The decision was reached despite the Commission’s failure to uncover any credible evidence of consumer harm, and ignores the realities of a market that is thriving, competitive, and growing fast.
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