The European Commission has imposed a €1.8 billion ($2 billion) fine on Apple for engaging in unfair competitive practices related to its music streaming service, Apple Music. This decision follows a complaint filed by Spotify.
Margarethe Vestager, the EU competition chief, highlighted that Apple device users within the European Union were restricted in making a free choice regarding where, how, and at what prices to purchase music streaming subscriptions. The fine is linked to Apple’s policy of charging companies a 30% fee for sales conducted through apps on Apple’s iOS operating system for iPhones and iPads.
Companies seeking to avoid this fee and provide lower prices must handle sales outside the app. However, Apple prohibits them from using the iOS app to inform users about prices or provide a link to a sign-up page, which the commission refers to as “anti-steering” measures.
The European Commission has mandated that Apple cease these “anti-steering” measures, allowing music-streaming developers to freely communicate with their users, even within iOS apps. However, the decision does not compel Apple to stop charging a 30% commission on in-app sales, with the fee applying only to paid services provided through an iOS app, such as music and video streaming.
It’s important to note that purchases of physical goods through Amazon’s iOS app are not subject to this fee. For instance, Spotify sells subscriptions through its website rather than through the Spotify app for Apple’s iOS operating system.
Apple countered, stating that Spotify, with a 56% share of the European music streaming market, does not pay any money to Apple and has achieved market leadership in part due to Apple devices and software. The commission’s press release, however, asserts that Apple is abusing its dominant position in the market for distributing music streaming apps to iOS users through its App Store.
When contacted for comment, Spotify has not yet responded.
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