The European Union (EU) fined Silicon superstar, Apple, with a 1.8 billion-euro-fine (USD 1.9 billion) for violating the bloc's laws by preventing music streaming services from informing users about subscription options outside of its App Store.
The iPhone maker has vowed to challenge the first ever antitrust fine by the EU, stating that "The decision was reached despite the Commission's failure to uncover any credible evidence of consumer harm, and ignores the realities of a market that is thriving, competitive, and growing fast."
The development is a result of a 2019 complaint against Apple by Swedish music streaming giant, Spotify, regarding the company’s online music distribution procedures.
The European Commission (the EU's powerful antitrust regulator) said it "found that Apple applied restrictions on app developers, preventing them from informing iOS users about alternative and cheaper music subscription services available outside of the app. This is illegal under EU antitrust rules."
"For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store," Commission Vice President, Margrethe Vestager, said in a statement.
The EU anticipates that the fine will prompt Apple to cease restricting access to competing streaming services, especially considering its obligation to comply with the Digital Markets Act, a new law it must adhere to by March 7. The DMA gives the commission the power to fine companies up to 10% of its global revenue for any violations or 20% for repeat offenders.
Critics have pointed out that the fines are relatively low compared to Apple’s earnings. In the last three months of 2023, Apple reported USD 33.92 billion in profits.