Brussels has imposed a historic fine of 1.84 billion euros ($2 billion) on Apple for hindering competition from music streaming rivals through restrictions on its App Store.
This marks the iPhone maker’s first-ever penalty for breaching EU rules, with a basic penalty of 40 million euros being significantly inflated by a substantial lump sum included as a deterrent—a first for the European Union’s antitrust authorities.
The European Commission initiated charges against Apple last year after Swedish streaming service Spotify and others alleged that Apple prevented them from informing users of payment options outside its App Store.
The Commission found Apple’s restrictions to constitute unfair trading conditions, a relatively novel argument in an antitrust case, also used by the Dutch antitrust agency in a 2021 decision against Apple in a case brought by dating app providers. The EU ordered Apple to cease such conduct.
Apple has announced its intention to appeal the decision, with a ruling at the Luxembourg-based General Court likely to take several years. In the meantime, Apple must pay the fine and comply with the EU order.
The company’s shares experienced a 3% decline following the announcement.
The imposed fine, nearly four times the 500 million euros initially expected, includes a basic element of 40 million euros—referred to by European Competition Commissioner Margarethe Vestager as a “parking ticket” for the U.S. tech giant—alongside an additional 1.8 billion euros as a deterrent.
Vestager noted that the total penalty of 1.84 billion euros amounts to 0.5% of Apple’s global turnover.
Apple has criticized the decision, asserting that it was reached without credible evidence of consumer harm and disregards the realities of a thriving and competitive market.
The company singled out Spotify as the primary advocate for the decision, highlighting the music streaming giant’s numerous meetings with the European Commission throughout the investigation.
Ozioma Samuel-Ugwuezi
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