The European Commission has slapped Apple with a fine of €1.8 billion ($2 billion) on Monday, accusing the iPhone maker of abusing its control over the App Store to stifle competition in the music streaming market.
The Commission took aim at Apple's “anti-steering” provisions, which restrict app developers from informing users about alternative subscription options available outside the App Store apps. The Commission argued that this put rivals like Spotify at a disadvantage and inflated music streaming costs for consumers.
“For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store. They did so by restricting developers from informing consumers about alternative, cheaper music services available outside of the Apple ecosystem. This is illegal under EU antitrust rules, so today we have fined Apple over €1.8 billion,” said Margrethe Vestager, Executive Vice-President in charge of competition policy and European Competition Commissioner.
The Commission further noted that Apple also barred developers from including links within their apps that could lead users to websites offering alternative subscriptions. This move, the EU argued, limited user choice and potentially steered customers towards Apple's own music streaming service, Apple Music.
The investigation into Apple’s App Store practices started after a complaint filed by Spotify in 2019. The Swedish music streaming company alleged that Apple's anti-steering rules were harming competition resulting in higher prices for consumers due to the 30% commission Apple charges on in-app purchases and subscriptions.
Apple, however, has strongly contested the Commission’s decision and said it will appeal the fine in a European court. The tech giant maintains that the Commission failed to demonstrate any evidence of consumer harm and argues its App Store practices are necessary to maintain a secure and user-friendly platform.