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Apple is being fined almost $2 billion USD for supressing alternative music streaming apps on its App Store. It’s the first time the EU has penalised the company and its third largest fine ever.
Which music streaming platform do you opt for? Are you an avid Spotify user or an Apple Music goer?
The two platforms are considered to be direct competitors within the streaming space. Now, after months of rumours, the European Commission has officially fined Apple for restricting alternative options on its App store.
An investigation began in 2020 following a filed complaint from Spotify. The company alleged that Apple deliberately took steps to suppress its exposure compared to iTunes and Apple Music. This practice is known as anti-steering and is illegal under EU antitrust laws.
We’ve imposed a fine on Apple for its abusive App Store rules for music streaming providers.
Press conference by Executive-Vice President @vestager ↓ https://t.co/jZF0TZ05nm
— European Commission (@EU_Commission) March 4, 2024
The inquiry found that Apple banned app developers from telling consumers the price of internet subscriptions outside of its own platforms, or the difference between in-app and outside purchases. It also stopped developers from including links to alternative subscription pages on their websites or in emails.
This meant that consumers were not fully informed about their purchasing decisions. Apple was found to be intentionally creating a more frustrating experience that emphasised reliance on its own apps, hardware, and services.
How long was this going on, you may be wondering? The European Commission says that Apple engaged with these practices for almost a decade.
The fine is considerable, totalling at nearly $2 billion USD.
In a statement, the European Commission says it’s decision for such a big penalty was to deter Apple from continuing with such practices in the future. However, it plans to appeal the decision.
This isn’t the first time Apple has come under fire for attempting to monopolise its App Store platform. A few years ago, Epic Games kick-started a public feud against the company for what it believed were unfair App Store percentage cuts and restrictive regulations. It even dropped a dramatic video that parodied 1984.
