The European Union has taken an important step in the regulation of digital markets by imposing a historic fine of €1.8 billion (US$2 billion) on Apple, the US technology giant, for its anti-competitive practices in the streaming music market. This penalty follows a lengthy investigation that found that the company’s actions adversely affected competition and consumer choice and unfairly benefited Apple Music.
Competition Commissioner Margrethe Vestager explained that the fine is because Apple restricted developers’ freedom to inform iPhone or iPad device users about cheaper options for purchasing music from the App Store. This put other music streaming services like Spotify at a disadvantage, as Apple Music came pre-installed and did not share its subscription revenue with anyone. “This is illegal and has affected millions of European consumers, who have not been able to freely choose where, how and at what price to buy streaming music subscriptions.” expressed Margrethe.
These actions have been deemed harmful to consumers in Europe, leading to a successful lawsuit by Spotify, Apple’s main competitor in the streaming music market. Although the fine imposed on the tech giant corresponds to 0.5% of its global revenues, which is lower than the 10% previously set, this decision sends a clear message to Apple and other tech companies about the importance of complying with the changes being imposed by the European Commission regarding the regulation of digital markets.
However, Apple has rejected the Commission’s decision and has announced that it will appeal the fine, arguing that there is no solid evidence of consumer detriment. The company has also stressed that the main beneficiary of this fine is its Swedish competitor, Spotify, with whom they have met on numerous occasions during the investigation.