Apple fined nearly $2 billion by Europe.

Recently, the European Commission, the executive body of the European Union (EU), officially fined Apple €1.8 billion (equivalent to $1.95 billion) for antitrust violations, alleging that Apple abused its dominant position in the market for distributing online music streaming applications.

Apple has been fined for the first time by the European Commission following a complaint from Spotify. (Image: readwrite)

The European Commission stated that it found Apple had imposed restrictions on app developers, preventing them from informing iOS users about alternative and cheaper music subscription services available outside the App Store. Furthermore, the agency accused Apple of prohibiting streaming music app developers from providing any guidance on how users could subscribe to these cheaper service offers.

The European Commission launched an investigation into Apple following a complaint from Spotify in 2019. The investigation was narrowed to focus on contractual restrictions Apple imposed on app developers, preventing them from informing iPhone and iPad users about alternative, lower-priced music subscription services outside the App Store.

According to the European Commission, Apple's practices have been ongoing for nearly 10 years and may have caused many iOS users to pay significantly higher prices for streaming music subscriptions, due to the high commission fees Apple imposes on app developers, which ultimately pass on to consumers in the App Store.

The EU considers these practices illegal, as they restrict consumer choice, potentially lead to price increases, and stifle competition by giving Apple an unfair advantage over its rivals. Furthermore, the EU has demanded that Apple eliminate these practices and refrain from repeating them in the future.

Reacting strongly to the fine, Apple stated that Spotify would benefit most from the European Commission's new ruling. “ The main supporter of this decision and the biggest beneficiary is Spotify – a company based in Stockholm, Sweden. Spotify has the world’s largest music streaming app and has met with the European Commission more than 65 times during this investigation ,” Apple said in a statement.

This is the first antitrust fine imposed on Apple by Europe, and also one of the largest fines the EU has ever imposed on a technology company. Immediately, Apple's stock price fell by about 2.5% in the US upon the announcement.

HUYNH DUNG (Source: CNBC/Gizmochina)

Source