EU Claims Apple Broke the Law With Its App Store Rules

 

The European Commission has fined Apple nearly $2 billion (€1.8 billion) for violating EU antitrust laws with its App Store practices. This penalty is a result of Apple’s “abusive” rules that allegedly prevent music streaming app developers from informing iOS users about alternative and cheaper subscription options available outside of the App Store. These anti-steering provisions were deemed to have unfairly restricted competition and consumer choice.

The investigation began following a 2019 complaint from Spotify, which accused Apple of leveraging its dominant market position to stifle competition. The Commission concluded that Apple’s practices led iOS users to pay higher prices for music streaming services, thereby harming both consumers and competitors.

In response, Apple has announced its intention to appeal the decision, arguing that the European Commission found no credible evidence of consumer harm and that the decision unduly favors Spotify, the largest music streaming service in the market. Apple also highlighted its long-standing contributions to the European market and hinted at potential operational changes if the ruling stands.

This decision comes just days before the Digital Markets Act (DMA) takes effect, which aims to curb the market dominance of major tech companies and foster a more competitive digital landscape in the EU. Apple has already made some adjustments to its systems to comply with the upcoming regulations.

Overall, this ruling marks a significant step in the EU’s ongoing efforts to regulate big tech and promote fair competition in the digital economy.