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The Corporation is obligated to compensate consumers for restricting access to other payment methods.
The European Commission imposed a fine of €1.8 billion on Apple. (about $1.95 billion) for "abusing its dominant position in the music streaming app distribution market." The decision was made as a result of an antitrust case initiated after a complaint from Spotify.
Margrethe Vestager, the EU competition commissioner, explained that Apple limited the ability of app developers to inform users of Apple devices about alternative, cheaper ways to buy subscriptions outside the Apple ecosystem. Such actions are considered illegal and affected millions of European consumers, depriving them of the opportunity to freely choose the place of purchase, method and price of subscriptions for streaming music.
The fine also includes a one-time compensation for non-financial damage caused to consumers, and is aimed at achieving a deterrent effect. Apple intends to appeal the decision, saying that it was made despite the lack of reliable evidence of harm to consumers.
Spotify welcomed the decision, noting that it sends a strong message that no company, even with a monopoly position, can abuse its power to control how other companies interact with their customers. However, it is noted that the decision of the Commission does not solve the problem of unfair behavior of Apple against developers in other areas and in other markets.
Vestager also noted that the case against Apple highlights the central role of antitrust law in the EU's digital single market. From March 7, 2024, Apple will have to comply with the full list of requirements of the Digital Markets Act (DMA), including a ban on imposing certain restrictions that were the subject of this investigation.
The rules apply to any app in the App Store, not just music streaming apps. The company will need to open up its ecosystem so that end users can easily find apps, pay for them in any convenient way, and use them on any device.
Music service Spotify, which in 2021 filed a complaint against Apple in the European Commission for anti-competitive behavior of the company, then said that Apple's rules prohibiting Spotify and other developers from informing consumers about offers or promotions through their applications, mean that users are deprived of the opportunity to save money and enjoy a higher quality of services, which directly harms consumers.
The European Commission imposed a fine of €1.8 billion on Apple. (about $1.95 billion) for "abusing its dominant position in the music streaming app distribution market." The decision was made as a result of an antitrust case initiated after a complaint from Spotify.
Margrethe Vestager, the EU competition commissioner, explained that Apple limited the ability of app developers to inform users of Apple devices about alternative, cheaper ways to buy subscriptions outside the Apple ecosystem. Such actions are considered illegal and affected millions of European consumers, depriving them of the opportunity to freely choose the place of purchase, method and price of subscriptions for streaming music.
The fine also includes a one-time compensation for non-financial damage caused to consumers, and is aimed at achieving a deterrent effect. Apple intends to appeal the decision, saying that it was made despite the lack of reliable evidence of harm to consumers.
Spotify welcomed the decision, noting that it sends a strong message that no company, even with a monopoly position, can abuse its power to control how other companies interact with their customers. However, it is noted that the decision of the Commission does not solve the problem of unfair behavior of Apple against developers in other areas and in other markets.
Vestager also noted that the case against Apple highlights the central role of antitrust law in the EU's digital single market. From March 7, 2024, Apple will have to comply with the full list of requirements of the Digital Markets Act (DMA), including a ban on imposing certain restrictions that were the subject of this investigation.
The rules apply to any app in the App Store, not just music streaming apps. The company will need to open up its ecosystem so that end users can easily find apps, pay for them in any convenient way, and use them on any device.
Music service Spotify, which in 2021 filed a complaint against Apple in the European Commission for anti-competitive behavior of the company, then said that Apple's rules prohibiting Spotify and other developers from informing consumers about offers or promotions through their applications, mean that users are deprived of the opportunity to save money and enjoy a higher quality of services, which directly harms consumers.
