The EU has imposed substantial fines on Apple for engaging in anticompetitive practices within the music streaming market. The European Commission’s competition head, Margarethe Vestager, announced the fine, citing Apple’s violation of antitrust rules by preventing developers from informing users about alternative music services in the App Store.
Antitrust Violation: A Decade-Long Issue
“For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store,” stated Vestager. The fine exceeds 2 billion euros, highlighting the severity of the antitrust violation.
Impact on Music Streaming Market
Apple Music, holding the third or fourth position in the European Union’s streaming market, faced allegations of restricting developers, particularly affecting competitors like Spotify. The latter, holding a majority share, welcomed the fine as it addressed issues related to communication restrictions imposed by Apple.
Apple’s Response and Defense
Apple responded, expressing its disagreement with the decision, emphasizing the thriving and competitive nature of the digital music market. The company defended its role in supporting Spotify’s success and highlighted the App Store’s contribution to the music streaming giant’s growth.
Ongoing Dispute and Regulatory Measures
This decision marks a significant development in the ongoing dispute between Apple and Spotify, originating from complaints filed in 2019. The EU investigation revealed Apple’s breach of promotional restrictions, leading to the imposition of fines and a subsequent adjustment in the App Store’s payout structure.
Also: Apple Cancels Electric Car Project: A Strategic Shift in Focus
EU Fines Apple: Frequently Asked Questions (FAQ)
Q: What led to the EU imposing fines on Apple?
A: Apple faced fines due to alleged anticompetitive behavior, violating antitrust rules by limiting developers from informing users about alternative music services in the App Store.
Q: How much is the fine imposed on Apple?
A: The fine exceeds 2 billion euros, reflecting the severity of the antitrust violation.
Q: How does this impact Apple Music’s position in the market?
A: Apple Music, holding the third or fourth position in the European Union’s streaming market, faced allegations of restricting developers, particularly affecting competitors like Spotify.
Q: What is Apple’s response to the EU’s decision?
A: Apple expressed disagreement with the decision, highlighting the thriving and competitive nature of the digital music market. The company defended its role in supporting Spotify’s success and emphasized the App Store’s contribution to the music streaming giant’s growth.
Q: What regulatory measures have been taken following the investigation?
A: The EU’s decision marks a significant development in the ongoing dispute, leading to fines and an adjustment in the App Store’s payout structure to address Apple’s breach of promotional restrictions.
