*Updated
The European Union has fined Apple more than $30 million 1.8 billion euros for abusing its dominant market position Distribution of streaming music applications available for iPhone and iPad users via the App Store.
The investigation conducted by the European Commission found that Apple imposed restrictions on application developers that prevented them from informing iOS users Alternative, cheaper music subscription services available outside of the app.
The sanction comes with a dStatement from Spotify in 2019, in which they pointed out that Apple’s App Store rules deliberately limited options and stifled innovation, impacting the user experience. He also accused Apple, the maker of the iPhone, of behaving to the detriment of other app developers by playing a dual role as participant and judge in the App Store ecosystem.
Research background
In June 2020 The Commission opened a formal investigation into Apple’s rules for app developers to distribute apps via the App Store. In April 2021, the Commission sent Apple a statement of objections, to which Apple responded in September 2021.
In February 2023the Commission replaced the 2021 MB with another MB that clarified the Commission’s objections and to which Apple responded in May 2023.
As a result, Apple will have to pay a payment of around 40 million euros due to its failure to comply with EU regulations, in addition to a further 1.8 billion euros intended as compensation for damages caused to consumers as a result of its policies. This amount represents approximately 0.5% of Apple’s total reported revenue in 2023. It is estimated that the fine would have been up to 10% of this amount, the maximum limit set by the Commission for this type of punitive measure.
«Apple’s behavior, which almost continued ten yearsmight have led many iOS users to this pay significantly higher prices for streaming music subscriptions This is due to the high commission that Apple imposes on developers and passes on to consumers in the form of higher subscription prices for the same service in the Apple App Store» says the statement.
Spotify responded to the fine with a statement on its company blog: “Today’s decision marks an important moment in the fight for a more open Internet for consumers.” The European Commission (EC) has made its conclusion clear: Apple’s behavior of restricting communications with consumers is illegal. “This decision sends a strong message: No company, not even a monopolist like Apple, can abuse its power to control how other companies interact with their customers.”
While Manzana has also replied and expressed its intention to appeal the European Union fine. In the statement he attacked Spotify: “The main proponent of this decision (and the biggest beneficiary) is Spotify, a company based in Stockholm, Sweden. Spotify has the largest music streaming app in the world and has met with the European Commission more than 65 times as part of this investigation«. Apple also shared data showing that the Spotify app was downloaded, reinstalled or updated more than 119 billion times on Apple devices. Additionally, Apple argues that Spotify is leading the market over competitors such as Google, Amazon, Deezer, SoundCloud and Apple itself.