ALBAWABA – European Commission antitrust regulators have slammed Apple for the first time with a $2 billion fine over its App Store policies, 5 years after Spotify filed a complaint regarding Apple’s prohibition for music services to advertise cheaper subscriptions that can be obtained outside the App Store, it’s the first the EU has ruled a fine pay over Apple.
In a press release, the European Commission announced that it has fined Apple more than €1.8 billion over abusing its market dominance in the distribution of music streaming apps to iOS users via the App Store, claiming it discovered that Apple had placed constraints on app developers, prohibiting them from informing users about less expensive music subscription services that are available outside of the app, a practice that is illegal in accordance with EU law.
The commission notes that due to Apple's high commission fee that it levied on developers and then passed on to customers in the form of higher subscription prices for the same service on the Apple App Store, many iOS users may have been forced to pay noticeably higher prices for music streaming subscriptions and dealt with a degraded experience for nearly a decade.
Apple commented on the decision saying it was reached regardless of the Commission's inability to find any reliable proof of damage to consumers, and that it overlooks the facts of a market that is vibrant, cutthroat, and expanding quickly.
The tech giant added that it provided Spotify with an immense support as they became the number one music subscription service in the EU while Spotify pays Apple nothing, stating that Spotify is “wants to bend the rules in their favor by embedding subscription prices in their app without using the App Store’s In-App Purchase system. They want to use Apple’s tools and technologies, distribute on the App Store, and benefit from the trust we’ve built with users — and to pay Apple nothing for it.”
Spotify App running on Apple iPhone with Spotify logo in background (Shutterstock)
Spotify on the other end described Apple as a “monopoly” that abuses its power to “control how other companies interact with their customers,” stating that Apple prevented them from interacting with consumers about upgrades, subscription costs, discounts, and a host of other benefits.
“Apple Music, a competitor to these apps, is not barred from the same behaviour. By requiring Apple to stop its illegal conduct in the EU, the EC is putting consumers first,” Spotify’s announcement added.
