Apple has been hit with a record $1.95 billion (€1.8 billion) fine by the European Commission for infringing EU antitrust regulations across the music streaming market on the App Store, surpassing any initial expectations. The penalty is a response to the investigation initiated in 2020 after Spotify lodged a complaint, alleging that Apple was deliberately trying to suppress its music service to eliminate competition with iTunes and Apple Music.
The Commission stated that Apple has been prohibiting music streaming app developers from sufficiently informing iOS users about cheaper and alternative music subscription services accessible outside the app. Additionally, developers were prevented from providing instructions regarding how to subscribe to such offers. This practice is known as ‘anti-steering’ and is considered illegal under EU antitrust law.
The Commission found that Apple banned app developers from revealing the price disparity between in-app and online subscriptions or the actual price of any internet subscriptions. The company also prohibited developers from adding information about, or links to, alternative subscription purchase pages on their websites or within emails. The Commission stated that Apple’s practices, which have been ongoing for nearly a decade, may have resulted in users paying more for their music streaming subscriptions due to the fees Apple imposes on developers.
The penalty substantially exceeds the rumored €500 million fine that Apple was anticipated to receive for its antitrust App Store policies. The European Commission asserts that the actual fine of €1.8 billion has been designed to act as a significant deterrent to prevent Apple from repeating these actions. Apple, however, plans to challenge the ruling.
