The European Commission has slapped Apple with a hefty €1.8 billion ($2 billion) fine for engaging in unfair competitive practices related to its music streaming service, Apple Music, following a complaint lodged by Spotify.
According to EU competition chief Margarethe Vestager, Apple device users in the European Union “were not able to make a free choice as to where, how and at what prices to buy music streaming subscriptions.”
The fine stems from Apple’s policy of charging companies a 30 percent fee for sales conducted through apps running on its iOS operating system for iPhones and iPads. To circumvent this fee and offer lower prices, companies were forced to handle sales outside the app. However, Apple also prohibited them from using the iOS app to inform users about prices or to provide a link to a sign-up page.
Vestager highlighted an example involving Spotify, stating, “For example, Spotify sells subscriptions through its website but not through the Spotify app for devices running Apple’s iOS operating system.”
Users can subscribe to Apple’s own music streaming service, Apple Music, through the “Music” app pre-installed on iOS devices. However, the commission found that Apple imposed 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,” Vestager emphasized.
